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From Conventional to Crowdfunding: 4 Popular Ways to Get Business Funding

May 5th, 2016 · No Comments · Career

by Kristy Welsh

(Last Updated On: January 9, 2018)

four popular ways to fund your businessThe more open-minded you are, the more successful you’ll likely be funding your business – from old-school brick-and-mortar banking, to funding from family, friends, and strangers on Kickstarter. Get the facts about four popular ways to get business funding, from conventional to crowdfunding.

Small Business Loans

If you’re interested in a traditional loan through a bank, one of the best places to start is with the Small Business Administration (SBA). It’s not a lender, but an organization that sets the guidelines for loans, qualifies borrowers, and facilitates the loan process with its lending partners. Take a look at the list of qualifications and terms of SBA loans.

Small Business Credit Cards

If you’re hoping a small business credit card will solve problems your personal credit card cannot, get the facts first. There are pros that can be helpful, but there are cons that can be costly, too. Get the facts about credit limits, interest rates, personal liability, and more.

Peer-to-Peer Lending

It’s not just for personal loans. In fact, the biggest name in the game – Lending Club – finances personal and business loans, too. Its main competitor, Prosper, doesn’t technically do business loans, but you can get personal loans for business expenses. Learn more about these platforms, including the application process, how much you can finance, fees, loan terms, and more.

Crowdfunding

You can crowdfund pretty much anything these days. Kickstarter has the best name recognition, but when it comes to funding a business, check out these 10 alternatives, too.

Do you have the credit to get business funding?

Even though you’re looking for funding for your business, the state of your personal credit will likely play a big factor in your ability to get it (with the exception of crowdfunding). That said, there are other factors involved and, in fact, peer-to-peer lending relies less on credit scores than other traditional funding models do. You’re best-served, though, making sure your credit is in as good of shape as possible.

Start here. We walk you through the DIY credit repair process every step of the way.

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