Best Ways to Get Funding for Your Small Business

Best Ways to Get Funding for Your Small Business

  • July 4, 2021
  • Written by : Elizabeth Beall

Every funding blog starts the same. Rather than continuing to blend in, we’re here to make a REIL difference.

If you’re looking for something that screams, “this is how to get funding,” you’ve found it.

We’ll skip the redundant reasons on why you may be seeking funding because we assume you already know why. Instead, we’ll cut to the chase and explain exactly how to get fast working capital into your hands.

We do want to mention however, that if you do not have a good understanding as to how funding works and whether or not you need it, we have financial experts that we would be happy to set you up with.

It all comes down to your particular needs; what are you struggling with or trying to accomplish in your business? What is your budget? What are your must-haves when it comes to securing a lender for this process?

Getting funding for your small business isn’t usually an easy process or decision, but we’re here to make it easier by explaining what types of funding may be an option for you, and just as important, where to find that particular type of funding.

Let’s dive in.

How to get funding to start a business

It’s tough to start a business from the ground up, especially without enough working capital. A sufficient amount of capital allows for entrepreneurs to properly launch their new business, to take risks as they begin [and continue to grow], and  to hopefully catch the eye of some worthy investors.

Overall, there are many ways to secure funding for a new business, these being a few:

  • Crowdfunding: Crowdfunding is a popular option for business, yet it is also often used for things like funeral costs, surgery payments, and other big family or friend crises. When you don’t know where to turn, and expenses are piling up, this is a common option that most turn to. When it comes to your business however, be as clear and as up-front as possible; explain why you need the money, your vision for the business, and how you will use the money, if received. That way, even a stranger can feel confident in sending you a few dollars and even just a little amount can go a long way.
  • SBA funding: This way of funding was created solely for business owners like yourself; the Small Business Association provides working capital to businesses in need, and plentiful resources to be used. Luckily, there are many options when it comes to a small business, including SBA express, term funding, revolving line of credit, invoice financing, equipment financing, and more. Your lender will ask for an application, required documentation, and possibly some collateral. We’ve streamlined our SBA funding application online to make things as quick and easy as possible.

Hearing all of these options may be overwhelming, so if you’d like a bit of advice, please talk with a financial expert on our team to help you decide which is best for you.

  • Family and friends: Your family and friends, if able, are usually always willing to help. They want to see you grow and be successful. Ask around to find out if anyone in your family or friend group has previously invested in another company, or if he or she would be interested in supporting you financially. Be careful on this front however, as it is easy to hinder relationships when it comes to finances (or a lack there of). Try to be clear in your plan to pay them back; that way, both parties, yourself included, feel a bit more comfortable with borrowing.
  • Investors: If your business has either already taken off, or has the potential for stealing a big part of the market share within your industry, then it may be worth reaching out to a few investors. Start with who you know, because you’ll want to work with who you’ll trust. Our advice however is to be very clear in your offering, as far as how much equity, if any, he or she will receive, and how hands-on he or she will be during the growth process.

How do small businesses get funding?

First, you’ll need to decide on a lender. Feel free to reach out to our financial experts to see if we’d be a good fit for you. You should feel comfortable speaking about your financial standing and background with this chosen individual, and it is ideal if he or she has some sort of direct relation with or previous experience working in your industry.

Next you’ll need to decide on your preferred way of funding. While there are many funding outlets, there are several more common options, and there are some more beneficial options. It is up to you, the business owner, and your chosen lender to determine the best kind of funding for you. This is chosen based on your eligibility, ability to meet the listed requirements, and ability to repay the initial funding amount plus the associated fee.

To see our funding requirements, visit here.

FAQ: Best Ways to Get Funding for Your Small Business

What funding am I eligible for?

Eligibility will vary per lender and type of funding. Our SBA funding qualifications are as follows:

  • $100,000 minimum annual revenue
  • 3+ years in business
  • 650+ credit score
  • 145+ Business Score
  • No Bankruptcies, Outstanding Liens or Judgements

How to get funding for a business with no money? 

As we mentioned above, it is common for an entrepreneur to be without working capital when starting a business. The most useful ways of funding in this situation are: crowdfunding, SBA funding, family and friends, and investors.

What kind of funding should I get for my small business?

This will depend on your eligibility, as well as your business needs. For example, if you need to pay employees, then invoice financing may be a good option for you. Whereas if you need capital that can be used and repaid often, then a revolving line of credit may be a better fit.

How long will it take to get funding?

With us, you can receive funding in as little as 48 hours. Once approved, you’ll have working capital in no time.

Where should I apply for funding?

We would love for you to consider us for your funding needs. We’re a family of financial experts ready to help you. Please apply for funding here.

We look forward to speaking with you. With our team and yours working together, you’ll see growth in your small business very soon.

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