Find Startup Money for Your New Business

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					Find Startup Money for Your New Business
Starting a new business requires start up money and while you may have a portion of the money
you need you’ll likely need to find funding for the balance elsewhere. There are a number of
sources available to you.

        Small Business Grants: Entrepreneurs generally have limited funds and their access to
        capital can be significantly stifled. There are a number of small business grants available
        to entrepreneurs and you should take the time to become familiar with them. You may be
        pleasantly surprised to learn what grants could benefit your business.
        Investors: There are plenty of investors out there that are looking to invest in a great
        business idea. Investors can take some work to find but they are definitely worth the
        effort, because it’s one way to get your new business off the ground that you may not
        otherwise be able to do. There can be a one or more investors.
        Debt Financing: Debt financing means you borrow money from a lending institute of
        some sort. The amount is based on a number of factors. Small businesses often turn to
        bank loans to get the working capital they need to get their new business off the grounds.
        The bank loan may be based on your personal credit score. It may be secured or
        Small Business Administration Loans: The SBA facilitates loans for small business
        however there are no grants here, nor does it directly issues startup loans. Rather the
        Small Business Administration loan program is a guarantor for small business that wants
        to borrow from a traditional lender.
        Startup Financing – Some individuals, companies, and lending institutes focus on
        offering funds for startup of new business, and many times to businesses that might
        consider the business venture as high risk.
        Angel Investors – This is a group of investors that are willing to fund new small business
        ventures. An angel investor can help your company move to the next level.
        Venture Capital Firms – They provide equity but then require a high return on their
        investment three to five years later. They tend to finance companies that have the

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        likelihood of significant growth. They do not generally invest in small business unless
        they see that type of potential.

When starting a new business startup capital is essential to getting that business off the ground.
By understanding the options available to you, you can make the right choice for capital for your

© 2011 Apptivo Inc. All rights reserved.

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