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Finding places to secure funding for your start-up company is becoming more and more difficult. In tough economic t...
Finding places to secure funding for your start-up company is becoming more and more difficult. In tough economic times, lenders are raising interest rates and lowering the amount of capital they are willing to provide you with.
Lenders want you to risk more collateral, have a higher credit rating, and even have you provide them with years of financial paperwork. That doesn’t work for most start-up companies. Instead, there are some alternative funding options that new-age start-ups are taking advantage of.
Here are some options that you may have heard of, but didn’t know enough about to jump into head-on:
There’s a pretty good chance you’ve heard of crowdsourcing giant Kickstarter. But have you heard of others such as PeerBackers and IndieGoGo? They are all sites that allow you to pitch your business idea to the world and secure funding, a lot of times coming in the form of small donations from people you’ve never even met.
You have to make a post offering details of your final project, and you’ll have to turn it into almost a community event. But if you reach your funding goal, you won’t have to pay back anything and there are no interest payments to worry about. Certainly a tempting choice.
Business Plan Competitions are little known, but they can provide major funding. Usually they are associated with a particular college or institution of higher learning. At these competitions, multiple entrepreneurs make pitches to a panel of potential investors and local business owners.
If your plan is selected, your start-up could be completely funded. Look online or ask your local college about their business plan competitions. They are worth the time.
Does your business need equipment, vehicles, or technology resources? Well here’s a way for you to secure them. Instead of going to the bank and asking for a loan, you can look up the Equipment Leasing and Finance Association, which often leases to small business owners and start-ups at a very low rate.
You might even be able to get some equipment that isn’t readily available to you in another form, such as computer software protected by licensing.