Business Bank Loan

One of the most typical routes to business funding is a loan from your business bank, however in the real world these can be difficult to be approved for unless you have assets to speak of, or you are willing to put up personal security to cover the debt if the business were to cease trading before the loan had been repaid.

Starting with your own bank can be a good strategy, your existing bank will be in a good position to merit you for your good standing and trading history. Even if your bank offers you a favorable rate it pays not to over look other lenders.

Factoring

Factoring is a way of raising quick finance at low cost. It is ideal for business with steady sales in a business to business industry. Factoring companies will provide business funding based on the value of your unpaid invoices. This can be beneficial if you operate with high margins to justify the fees associated.

Credit Cards/Overdraft

If you are looking to cover unexpected purchase and expenses then credit cards can work. For a new firm with low initial launch costs credit cards can be a viable option. There are many interest free rates available so it can be a simple and efficient source of business funding. A bank overdraft is another option, however this is an unstable form of finance as the bank can remove the overdraft facility at any time.

Leasing

If you require business funding for the capital outlay for machinery or expensive equipment then leasing could be a safe bet. Leasing spreads the cost of owning critical business equipment over a period of time enabling the operation to grow pretty quickly.

Equity Finance/Outside Investment

Seeking business funding by releasing equity stakes in your business can be highly beneficial as outside investors, such as Business Angels can add expertise and knowledge to your business as well as the capital injection. This form of finance also carries less risk to your possessions as you will not usually be required to provide any personal guarantees to cover the funding required.

An inexpensive way to attract investors to your business is to register with Edge Venture and record an elevator pitch, this will present your business funding opportunity to many investors at once.

Using Edge Venture to attract investors to your business is highly effective. Find the business funding you need from a database of hundreds of Business Angels and Venture Capitalists. Visit Edge Venture now to learn more.

- Simon Murray