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Most new businesses are going to be limited to a strict budget, but this does not mean that owners have no options when it comes to seed money. Business owners have a number of creative routes that can be taken to acquire funds in a unique manner, and here is a closer look at some of the best options for an immediate cash infusion.
Angel Investors
When an entrepreneur finally makes a sizable amount of money, they may want to turn around and help those that are on the same path as them. Angel investors differ from other investors in the fact that they often take a much more active role in their investments. Angel investing networks can be found in almost every major city and help fledgling entrepreneurs with money, advice, and connections.
Crowdfunding
Crowdfunding has become immensely popular in recent years and is a system in which the public can use their own personal funds to help a business in its earliest stages. This typically takes place through an online medium and any donated funds are generally reward-based. Those that help the startup will often receive information packets, signed cards, or will be in the front row for any products or services from the company.
Venture Capitalist
Many of the leading venture capitalist firms rent out corporate function venues which gives entrepreneurs a platform to pitch their ideas. The primary difference between crowdfunding and a venture capitalist is the fact that these investors generally receive equity in the company for any money invested. Their thought process is that most startup companies will fail, but they will turn a profit as long as one or two eventually make it big and they are the primary shareholders.
Credit Unions
When it comes to small business loans and startup revenue, banks can be a difficult route. Banks often have such low rates that it is not worth the risk of the company failing. This is why many small business owners and entrepreneurs have turned to credit unions for a quick cash infusion. Credit unions are actually owned by its members, and this means that they are much more flexible when it comes to loans and financing. The business owner may still need to use collateral such as their home or any other property they own.
One thing that every new company is going to need is money. For those that have exhausted all of the traditional routes, these four options may be all that is needed to finally get the required financing to begin their operations.
