You have the idea that will revolutionize the industry but lack the capital to get your business off the ground. Here are five ways to finance your entrepreneurial dreams.
1. Consider Crowdfunding
Crowdfunding lets you present your idea for a business to strangers online. These individuals then decide whether to contribute to your cause or let others get in on the great idea that is bound to gross millions in coming years. GoFundMe is one of the more popular crowdfunding hubs, though there are donation sites specifically dedicated to startup business owners that would probably be more beneficial.
2. Use Your Credit Cards
If you have the means of charging upwards of $5,000 to start your small business to your credit card, then, by all means, go for it!
3. Apply for a Small Business Loan
The more traditional route to financing your entrepreneurial ambitions is applying for a small business loan. You should be able to furnish proof of your ability to repay the loan with thousands of dollars in your savings account or stock investments before presenting your portfolio to the bank.
4. Find an Angel Investor
There are always investors searching for ways to expand their portfolios. You could be their next beneficiary if you present a meticulously crafted plan.
5. Apply for a Microloan
Microloans are the perfect solution when you lack the credit history to qualify for a traditional small business loan. You still need to show proof of income that secures the loan despite the overall terms of financing being more relaxed.
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