Some Creative Methods To Get Funds For
Your Startup
Every startup owner has to seek funding options from time to time.
From new product development to backing your business growth,
you need money for various purposes. Now, the traditional funding
alternatives may work for some entrepreneurs, while others could
have a problem in securing them. Some founders go for banks,
which later denies giving them loans. A crucial thing to understand
here is that loans are not that effective, and there are a lot of
creative alternatives for supporting your startup. In this article, I will
tell you some creative methods to ​get funds for your startup​. So,
let’s get started!
Top 10 Creative Methods To Get Funds For Your Startup
1. Personal Financing
Many startup owners may not find this one creative, but there is a
lot of creativity within it. See, you are the only one who decides how
to fund and how often to fund your business. No one is there who
puts restrictions on fund allocations. Thus, you finance your startup
the way you exactly want to do.
2. Friends And Family
There is no guilt in asking for seed capital from your friends and
family members. In most cases, they will likely apply their resources
to your startup. An advantage that exists with this option is these
individuals don’t ask for any financial contracts. But, a limitation is
they can offer funds that aren’t enough for your seed capital. Still,
friends and family members are ready to help you.
3. Personal Credit Lines
Almost every startup owner today is capable enough to apply for
personal credit lines. Anyone can obtain a credit card by showing a
few histories of his or her business. Many new founders have
launched their companies by using their plastic cards. With this
method also, you are the one who puts control of funds.
4. P2P Lending
It is a funding method where some people build an organization and
help each other. This world has a lot of examples of such
companies that started their journey with Peer-to-Peer lending.
Being a startup owner, you should follow such organizations so that
you secure some notable investments for your startup.
5. Crowdfunding
You may have heard about crowdfunding platforms where an
entrepreneur receives funds by offering some product samples or
incentives. There are hundreds of c
​ rowdfunding platforms for
startups in India​. Here, the more you are creative and promising, the
more investments you secure for your startup. Bring a brilliant idea
to them and ask to support it with their finances.
6. Microloans
Many organizations exist that offer microloan for new startups for a
considerable duration. Their primary goal is to promote every
business idea. Some of them can offer $35000, while others can
offer up to $50000. Entrepreneurs who fail to get loans from the
bank can go for this option. They will likely help you with some
significant investments in your startup.
7. Vendor Financing
Quite often, you require tangible products to fill your inventory, and
you convince vendors to yield your returns until you sell the
products. Vendor financing can make an extension of a month for
you, depending on the worthiness of your credit and additional
costs.
8. Purchase Order Financing
A common issue that arises among all startup owners out there is
they don’t have enough cash to create new products on a fresh big
order. In such a case, Purchase Order financing firms can help you
out. These organizations give funds to the suppliers, thereby
finishing the deal and benefiting your startup.
9. Factoring Accounts Receivables
This method is very much similar to Purchase Order Financing. The
only thing that makes Factoring Accounts Receivables unique is
they apply to all the due amounts not received from purchasers. For
startup owners that are looking to expand their startup in a short
time, this method is fruitful. Also, it won’t take too long.
10. Investment Retirement Account
Last but not least, we have an Investment Retirement Account. The
method is quite accessible to all startups owners in today’s
competitive time. In this process, several individuals who trust you
fund your startup for a particular duration. You can reap lots of
benefits from this ​business funding​ method.
Final Thoughts
So, in this article, you have seen some creative methods to get
funds for your new company. I haven’t spoken about angel
investments, startup incubators, etc. because they can take a lot of
time for new startups. They analyze your startup thoroughly and
come to a fair decision after a long time. You should know that a
delay can kill your chances to ​live your startup dream​. Many
startups failed just because their owners failed to make them
survive with seed capital in the market. Also, the market does not
favor some businesses. Lastly, I will like to say you should follow
these creative methods to start and grow your business as early as
possible.
Reference Url:- ​Startup Piasa