{"id":35503,"date":"2019-09-18T15:48:24","date_gmt":"2019-09-18T19:48:24","guid":{"rendered":"http:\/\/www.andysowards.com\/blog\/?p=35503"},"modified":"2026-03-17T11:37:42","modified_gmt":"2026-03-17T15:37:42","slug":"7-funding-options-business-growth","status":"publish","type":"post","link":"https:\/\/www.andysowards.com\/blog\/2019\/7-funding-options-business-growth\/","title":{"rendered":"7 Funding Options for Business Growth"},"content":{"rendered":"

Funding a business is a challenge in even the most prosperous of economies, but given the state of the country\u2019s economy at the moment, it\u2019s arguably as difficult as it could be. This is true of start-ups looking to kickstart their operation and established businesses trying to take growth to the next level. The key is to know which options are available to you and, crucially, which is the best source of funding for your situation. To help you make the right choice, this guide outlines 7 of the most common funding options for businesses which are trying to grow.<\/p>\n

Apply for an SBA Loan<\/h3>\n

\"proceed-with-caution-10-tips-for-angel-investors-looking-to-fund-a-startup\"<\/a>
\nProceed With Caution: 10 Tips For Angel Investors Looking To Fund A Startup<\/em><\/p>\n

After the issues in the US banking system, many banks tightened their lending criteria and made it very difficult for businesses and individuals to source funding. This is why the government\u2019s Small Business Administration (SBA) is so important and so highly sought after by companies looking for financial support. While the SBA doesn\u2019t issue loans directly, several financial organizations offer SBA-backed loans to small businesses which meet the criteria. For example, enterprises can obtain funding from another source, such as a bank, which cannot be awarded an SBA loan.<\/p>\n

Apply for a bank loan<\/h3>\n

While banks are stricter than they have been in past years, this does not mean that it is not possible to obtain a bank loan. Do some research into banks that have dedicated funds for small business loans and put together a compelling application, and you may just be successful. Navigating the banking world is often time-consuming for busy owners. Many people find that working with a professional Business Loan Broker<\/a> helps them find better terms than they might get on their own. These experts have access to a wide network of lenders and understand which ones are currently active in specific sectors. This approach can save a lot of effort when you need a quick decision for a large project. It also allows you to compare different types of finance side by side to see which fits your cash flow best.<\/p>\n

Get a credit card<\/h3>\n

A credit card should not be used as a primary source of funding for your business as they often carry high interest rates and can have a significant impact on your credit score, especially if you only make your minimum monthly payments. Having said that, a credit card can be useful if used sensibly when you have a cash flow blockage or are investing in a one-off piece of equipment which will help your business to grow. Look for low interest rates and be sure to compare several options.<\/p>\n

To qualify for a bank loan or a credit card which has relatively low interest rates, your credit score should be as high as possible, and your credit utilization ratio should be healthy.<\/p>\n

Access funds in your 401(k)<\/h3>\n

\"top-tips-how-to-avoid-a-cashflow-crisis-in-your-business\"<\/a>
\nTop Tips: How To Avoid A Cashflow Crisis In Your Business<\/em><\/p>\n

If you are trying to start your own business and have given up work to do so, you may be able to use funds from your 401(k). There is a legal process and specific steps you need to follow, so it\u2019s best to get advice from a financial adviser with expertise in establishing a C corporation and the correct retirement plan. This can be a high risk strategy as you are gambling with your retirement funds. If your business is unsuccessful, it could have a serious impact on your future.<\/p>\n

Register with a crowdfunding site<\/h3>\n

Crowdfunding websites have become increasingly popular with businesses seeking funding for smaller projects. You simply create a profile which tells people what you would like to raise and when you need the money. It\u2019s then open for your friends, family, and anyone else you can convince to donate money in small amounts. Investors don\u2019t receive anything in return, but with enough support, you can raise money for a project. However, this is obviously not a long-term funding plan.<\/p>\n

Find an angel investor<\/h3>\n

\"startups-seeking-angel-seed-financing-expert-tips\"<\/a>
\n15 Expert Tips For Startups Seeking Angel Or Seed Financing<\/em><\/p>\n

Securing funding from an angel investor can be a complex task, but if you have the right approach, you may be able to convince someone wealthy to back your business. It\u2019s not easy to do as investors are approached by lots of entrepreneurs, but there are some key points to remember which may improve your chances of success.<\/p>\n