Which Business Funding is Right for You?
When it comes to funding a business, knowledge is power. There are numerous types of National Business Capital available to entrepreneurs and the savvy business owner will understand the importance of choosing the right one. The professionals at National Business Capital have a keen understanding of business funding and are available to assist you.
Understanding the pros and cons of the various forms of business funding is imperative. Here is a quick overview:
Most new small businesses obtain their business funding through debt financing. A bank grants a loan or line of credit with a repayment plan and interest rate. A solid business plan is required as well as a track record of proper financial management. The positive of debt financing is that you do not have to relinquish any equity in your business. The negatives are that personal collateral may need to to given, interest rates may be high, and the application process is typically long and stressful.
This type of business funding is obtained from private or institutional investors in exchange for a share of equity in the company. The funding sources range from family, friends, angel investors, and venture capitalists. Receiving business funding from family or friends is usually quick and easy, but for smaller dollar amounts and comes with the possibility of strained relationships. Angel investors will not only be able to provide greater funding, but they also offer business expertise and guidance. Unfortunately, they can be difficult to find. Venture capitalists are for established businesses ready for fast growth. A lot money can be available, but the investors look for a fast return on their investments.
We would be remiss if we left out grants as an option for business funding. Government and non-profits are great sources for this type of business funding. It is very difficult to find grants your business may be eligible for and can be difficult and time consuming to apply.
The business consultants at National Business Capital can educate you on the available forms of alternative financing. These are typically very quick to secure (funding can be as quick as 7 days), do not require a long application process, no equity is given up, and the repayment varies along with your income so you will not be overstretched.
With so many options available, be sure you are choosing the optimal source for your business funding. Call and speak with one of our business consultants today , at (877) 482-3008, to learn more about your options!