Without a doubt, the best way to fund small businesses is through your own private investment or non-repayable grant funding. Putting your own money into the business means you don’t need to answer to anyone and you are free to make decisions good or bad. Non-repayable grant funding is obviously cheaper and carries less risk than investing your savings so if you have the time to enter into a lengthy grant application process, you could benefit from much lower costs and a risk free venture.
Funding a Retail Business after the Start Up
Many grants exist for business concepts and businesses that are new and have no record of success or failure, but they are often restricted to certain industries. The UK grant system seems to have a phobia for retail businesses, which is not good news for anyone who wants to breathe life back into our high streets. For some reason, retail outlets are seen as high-risk ventures and bad use of grant money. This often means retailers need to get their business off the ground with minimum assistance and you can practically forget about borrowing from a bank unless you can afford the repayments without depending on your business for revenue.
Social Lending Hits an All Time High
Social lending has been around for a long time with Credit Unions being the best-known sources for funds for local businesses trying to get off the ground. Credit Unions are very similar to banks on the surface, but they have some fundamental differences. Credit unions are run on a not for profit basis because the money borrowed from the union originates from the deposits of people who are savers. You need to have been a member with a record of saving In order to borrow from a credit union and this is not ideal if you need a loan in the name of your business.
Social Investors Want to Help
Crowd funders have been helping businesses grow for a many years now, but the difficulties facing businesses trying to obtain low cost bank loans has encourage more and more businesses owners to look to peers for their investment needs. Websites like CrowdCube and kickstarter are funding everything from market stalls through to movies and there is a great deal of buzz around crowd funding. But the most successful businesses born out of the idea are those with mentoring built into the deal. Sites like Crowdit are realising the need for people with great ideas or products to have more than just money if they are going to make it as a business.
Peer to Peer Lending
P2P lending is really beginning to take off and it’s similar to crowd funding because it’s people like you and I who are lending the money to businesses. Business owners and finance managers review offers from many different lenders and they can choose which is cheapest or offers the best repayment terms to help push their businesses to where they need to be.
Alternative Lending Sources
Retailers are able to borrow from certain lenders when they are growing. Some banks offer cash advances based on the amount of revenue the business generates with card sales each month. One source for such loans is Business Loans Direct.
The advantage of having a business cash advance instead of a loan is that loans have fixed repayments each month, whereas a business cash advance only requires a fixed percentage of card sales. That means good months bring the outstanding balance down faster and there is no pressure to find enough revenue to make payments when the business has lower than expected sales figures.
Shaun Thomas
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Shaun nice share. Small business funding management is important. To provide the best funding supports in all small business purposes I believe this post provided information will be highly effective. Thanks for a good contribution.
Good advice. Funding a business is one of the first questions you need to answer and so it’s important to understand all the ways you can do that. Thanks for sharing!
If you are looking for a business loan, you need to spend time carrying out a little research, as there are different types of loan on offer from a host of providers.
Great Article. People will gained so much knowledge because of this! Thank You so much for sharing all these valuable Information.
I want to say that this is one of the best alternative ways to get financing for any small business including retail, motels or hotels
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Well for making an investment double you need to research on every thing. You need to focus on your business area before starting something same like other think if you can partnership with him you can save money time and your efforts but than there is an other problem the problem of trust but if you have everything legal than you have no issue and you can bring more business at one place and get better profit.
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yeah, peer to peer funding really works,,,thanks for sharing other awesome ways to het funding for small business
Absolute informative post for anyone in retail business. Thnx
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i have a small business,but i am trying to make it bigger,so a lot of work still to do no it
Well this is another very intresting post ! i really love this blgo and this post get me to thingagain on insvesting on my business ! hard luck i dont have money 🙁
Amazing to focus on! I have been trying to start some retail work online from last couple of weeks, and every time I try to take a start new thing comes up in my dashboard that prevents me to take a start. You have shared an amazing valuable information here.
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Yeah man i agree with you that business cash advance helps you to make your to easily start up your business and to make trust on banks by showing them necessary sales. And also it is a better method than taking loans for your business.
Nice article, I got to say that the first one is my favorite, work hard save some cash and invest your own money, if you cant afford it maybe better not to get in to it at all.
fully agree. the first options allows to reduced risks and gives independence!
Nice article, those were some of the best ways of small business funding, Thanks for sharing 🙂
Thanks Gurwinder, I’m glad you found it useful.
Great post mate ! This article would be very useful for people would be starting a retail business .. People here in India , mostly takes loan from their relatives to start a new business (If they don’t have the money) ..Thanks for sharing this information
Regards,
Pramod
Thanks Pramod,
I’m glad it helps some people even if it’s not quite relevant to everyone.
thankyou for this super article,i am going to open up a business online soon and this information as been very good for me,thankyou