In order to grow a company, it takes cash. Whether the cash comes from a loan or from your day job’s paycheck, it is apparent that you must finance your company from somewhere. There are several means to acquiring the cash you need to finance your company. There are a few different avenues open to getting the cash needed, it all depends on how much you need.
Payday loans offer a simple solution when you have need of small amounts of money. Places like Money Mart, Payday Loans, and several pre-approved over the internet financial companies can have cash in your hand with same day service. There is no collateral needed, but these type of loans often incur high interest rates between 25% to 50%.
Banks and other financial institutions may offer you a credit card with a predetermined limit. This credit could finance part of even all of your endeavour. They mostly have interest rates ranging from 20% to 25%.
Personal Loans and Lines of Credit
Many banks offer personal loans at an affordable interest rate. They range from a couple thousand dollars up to twenty thousand dollars. They offer conveniently structured payments made to be affordable at as low interest as prime rate if you’re lucky. Most though probably do prime plus and average about 7% interest.
Small Business Loans
Governmental incentives to start small businesses to drive the economy are behind many a bank’s willingness to do business. They offer similar interest to a personal loan but start at a higher capitol commitment. They range from ten thousand to fifty thousand dollars.
You could seek investment partners whether it’s to form a general partnership or a limited partnership. This lowers your profit significantly, but will allow you to get your business off the ground. Through time you could payoff each partner to gain more of the profit.
Barring all the above methods, you could just cut costs in your life and save money as you go. There are several things that people commonly have meant for convenience or entertainment that could be cut out of life. You could cancel things like cellphones and have a house phone installed instead. Take car pool, public transportation, bike, or walk to destinations to save on gas, insurance, and maintenance. Stop eating takeout food and cook your own meals, shop clipping coupons, or plan meals around sale items. Cut off cable and read books for entertainment, use libraries for DVD collections, Borrow movies from a friend. Just remember the more you cut the more you save.