If you’ve got a small business, options for funding business growth can be tricky to find. While you may have some cash on hand, that might not be enough. There are many other ways to secure funding for your business. Asset finance and equity investment are two popular ways to get additional cash. Each has its own pros and cons. Keep reading to learn more about your funding options. And remember: the sooner you get the money you need, the better!
Family and friends can invest in your business. But your business plan must be solid for them to provide the necessary funds. Family can invest through a loan or a stake in your company. However, this can cause conflict or infighting. Always seek legal advice before involving your family in your business, as you want to make sure that they’ll enjoy a healthy return. You may want to consider raising funds through reward crowdfunding.
Another option for funding business growth is using personal funds. A business can use money from a private bank account to make expansions. Some business house owners borrow from their home equity, take out a personal loan, or borrow from their retirement accounts. Whatever the case, this method of funding can be risky, especially if you’re a small business that relies on the money it has available to make it work. It also functions as an emergency fund.