Startup Financing: Advantages and Funding Options for Your Company

Startup Financing: Advantages and Funding Options for Your Company

  • November 18, 2021
  • Written by : Elizabeth Beall

Starting a business or planning to? You’ve come to the right place. According to the U.S. Small Business Administration, only 50% of businesses with employees survive past the first five years.

Our job is to make sure you and your business end up as the other 50% who survive and thrive.

There are two main must-needs when starting a business: a business plan and working capital. Without a business plan, your company will lack structure and direction; without working capital, your company will not be able to successfully carry out the steps laid out in your plan.

Working capital can be given to you in the form of funding by a qualified lender, family or friend, or investor. It’s up to you to determine which is the right choice.

Funding options for startup businesses

Funding options for startup businesses include, but are not limited to:

1. Crowdfunding either online or in-person

If you are able to clearly explain your needs and passion to friends or even strangers, people are usually willing to help you financially and support you morally.

2. Small business funding through a lender

Whether you are searching for resources or seeking working capital for your startup business, the team here at REIL Capital can provide you with answers, directions, and funding within 24 hours or less.

Fill out our 2-minute application for funding to get started.

3. Women-owned business financing through the Small Business Association

To the 53% of American startups with at least one woman in an executive position, customized funding is available for you via the SBA. They “help women entrepreneurs launch new businesses and compete in the marketplace with the training and funding opportunities.”

4. Investors, whether angel or other

Although most do not want to share ownership of their company, investors can be a great way to receive the capital you need. With a good business plan and an idea of how much equity you are willing to give up, an investor can offer both opinions and financial value.

Advantages of funding for startup businesses

We’ve picked what we feel are the best advantages below, but feel free to look at a longer list of benefits of funding here.

1. Align funding with monetary goals

Why spend money if you don’t know how it will impact your company both internally and externally? Know how funding can personally affect your business’s growth by checking out our previous blog “What Numbers a Startup Business Should Focus On.” Here, you can determine what your goals are and then, what form of funding is best for your startup.

2. Acceleration of growth

With funding comes an acceleration of growth through a wise funding strategy, the purchase of large assets, access to educated industry professionals, and the ability to gain big amounts of capital quickly.

3. Ability to protect and secure your business

Additional capital can help give you a bit of peace of mind, which is quite honestly one of the biggest benefits to funding. Having money in your pocket when you need it helps avoid stress, solve problems, and make decisions faster and easier.

Plus, you have the ability to cover surprise costs, make larger investments when needed, and handle emergencies without batting an eye.

4. Knowledge from a lender

If you choose to work with a lender (we hope you choose us), you will be introduced to your very own financial expert. This person, who doubles as your lender, can help you create a strategy, make clear decisions, and guide you toward exponential growth.

We are always here when you need us. We’d love to help your new business!

Let’s hit the ground running together. Apply for funding today!

One Comment

  1. My friend is trying to find a way to start his business. It makes sense that he might want to get a professional to help out with that. That way, he can ensure that he can get a loan together for it.

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