According to Mark Roemer Oakland, it’s incredibly challenging to start a new business without the necessary funding and manpower required. There is no one-size-fits-all approach since every business is different and has different requirements. Plus, you need to fulfill the requirements and eligibility criteria of different types of funding options available for small businesses.
Here are a few easy ways to acquire small business funding:
- Traditional loans – Bank loans are the most common solution that small business owners look for when it comes to funding. However, not every business can fulfill the need to secure a bank loan. Fortunately, you also opt for the Small Business Administration Loan program and the Small Business Lending Fund which are great options when starting a small business. These loans can easily help you meet the capital requirements for your new startup if you qualify for them.
- Grants – Grants have specific eligibility requirements and are more difficult to acquire. However, these can also support your new start-up if you qualify for them. Small Business Innovation Research Program is a very lucrative federal grant program that you can apply for along with Nav’s Small Business Grant and National Association for the Self-employed Grants.
Female business owners may have more luck applying for the Amber Grant for Women. For technology or research-based business, you may apply for the National Institute of Health Funding. Plus, you may also apply to other Government Small Business Grants.
- Fintech funding options – An alternative to government loans or traditional bank loans are loans acquired from financial technology (fintech) lenders. These offer a similar loan amount and term based on the lender’s credit history, application requirement, track record, and more.
If you have an existing business connected with a PayPal Business account, you may apply for both traditional business loans or working capital in just a few easy steps. Kabbage is a great option for online sellers that sell through sites like Amazon or eBay. Another popular option is OnDeck. Finally, you can use Lendio which is a financial aggregate platform that connects you with a network of over 300 lenders.
- Crowdfunding sites – Crowdfunding sites are a great option for small business owners when they are not eligible for any other form of credit. You just have to register on a crowdfunding site and create promotional materials to attract the necessary attention that would allow you to secure some funds for your next project. Every site works differently and has different sets of rules, terms, and conditions. So, it is crucial to read the fine print carefully. Popular crowdfunding sites include Kickstarter, Indiegogo, Causes, Patreon, and Fundable.
- Microloans – Unlike big businesses that need pretty hefty startup capital, small business owners may find it viable to start their new business with microloans which are easier to get and have more relaxed eligibility criteria. Some popular microloan providers include LiftFund, Accion, Opportunity Fund, Kiva.
Mark Roemer Oakland believes that it is easier to start a small business even if you cannot get funding through traditional means. There are many bootstrapping methods you may use such as fundraising from friends and family members or using your savings.