From the January 10, 2018 Small Business Administration (SBA) bulletin
Five Ways to Fund Your Startup
What are some ways to get funding as a startup with little to no business history? According to a report, the vast majority of startup funds – 82 percent – come from a combination of the entrepreneur’s own funds, family and friends.
Other than family and friends, the following are five ways to get funding for your startup:
1. Business Credit Cards – Unsecured revolving lines of credit in the form of business credit cards are a powerful tool to consider.
2. Microloans – For amounts under $50,000, you should consider a microloan. The SBA works with designated intermediary lenders across the country to provide microloans to small business. Find Washington-based SBA microlending partners.
3. Crowdfunding – One of the fastest ways to cast a big net for attracting investors to a business is through crowdfunding. Be sure to review SBA’s introduction to crowdfunding for entrepreneurs.
4. Credit from Vendors – Vendor credit is the largest use of capital from business-to-business and remains the number-one alternative to personal and small business loans.
5. Personal Business Loan – Securing a traditional business loan can be a time-consuming process and uphill battle for a startup. In a recent study, only 34 percent of small businesses received traditional funding through their bank, compared to 75 percent of larger businesses.
Tools like SBA guarantee loan products make business loans more accessible to newer businesses.
Want to learn more about SBA loan guarantee programs? Join us in person or tune into the live webinar hosted by the SBA Seattle District Office:
How to Get Money for Your Small Business
Thursday, Jan. 11 |11 a.m. to Noon