Where to Find Capital For Your Business

When trying to grow a business, one of the biggest challenges is finding enough capital to allow you to make the spends that need to be made.

Growing a business isn’t cheap. You need to invest in marketing, infrastructure, skilled employees and inventory.

So where do you turn when it’s time to raise capital for your business? You have several options. Some are better than others.

Let’s take a look.

1. Friends and Family

This is one of the quickest ways to find capital for your business — especially if you have friends or family with excess wealth that truly believe in what your business is doing.

Consider offering a percentage of your business to someone in your circle who’s willing to invest in it.

On the positive side of this option is that you can get money fast without a lot of hassle.

On the negative side is that often, this type of investor will want more control of your business than you are comfortable with. They may want to get involved in the day-to-day operations to the point where it overpowers your decision-making ability.

Ultimately, this partnership can kill good personal relationships.

2. Local Banks and Credit Unions

Instead of an investment, you might want to find a working capital loan. Your first thought is probably to look into local banks or credit unions.

While this is certainly a viable option, it may not be the best. Local banks and credit unions give loans for everything from cars and homes, to appliances and swimming pools. Most aren’t experts in business capital loans and probably won’t take the time to learn the details of what your business does and how the capital they loan will be applied toward your growth.

What’s more, it will be hard to get approval. People come up with new business ideas every day. Local banks are inundated with people looking for money to launch their ideas. Their default response will be “no” unless you give them a really solid reason to say “yes.”

Plus, the burden of credit-worthiness will be very high. This probably isn’t your best option.

3. Business Capital Lenders

This leads us to the solution that makes the most sense. Find a lender that specializes in business capital loans and nothing else. When trying to find a working capital loan, it’s by far the best way to go.

A service like working-capital.com can instantly connect you with over 45 available lenders that looking to invest in your business and help you grow. You can literally find the best fit in 60 seconds or less.

Growing a Business Isn’t Easy

Building your dream sometimes feels like a long walk down a never-ending road. When capital is running low, you might feel like you’re at a stand-still.

But finding capital for your business doesn’t need to be difficult if you know the right places to look.

Here’s to your success.