Last Updated on Apr 1, 2020 by James W
Every business needs to make that step up to the next level sooner or later. Standing still is simply not an option. You should always aim to grow the business and improve it in whatever way you can. But sometimes, you simply need that financing to make it happen. In the world of business, it’s hard to make anything happen if you don’t have the right financing in place. Unfortunately, money doesn’t grow on trees, so you need to go out there and get it.
There are many ways of looking for angel investors or taking out loans. Those are the conventional options when it comes to financing your business, but there are other ideas. If you’re looking for ideas that are a little more unconventional, here are some forms of financing you might not have thought of.
Selling Shares on the Stock Market
Floating your business on the stock market is a big move to make. It might be something that could help your business to reach the financing it needs though. You definitely shouldn’t rule it out. You have to be willing to let go of the ownership of a certain percentage of your business if you do this. And it means you have to answer to shareholders too. Every person who buys shares in your business will have a stake in it, and they’ll own a small amount of it. So, they will be able to have a say in how the business is run and what direction it goes in. However, it’s their money that you’ll be using to finance your business’s next move so it could be worth it.
Factoring
The business might already have debts owed to it in the form of outstanding invoices. One way of financing your business’s next move or expansion is to use factoring. This is when you sell those debts and invoices to an external company. You can then use the money you get to finance whatever you want to do with your business. It’s known as receivable factoring, and it’s something that many businesses make use of when its owner want to expand. You should talk to a company that could help you with this kind of factoring and see if it’s a realistic option for your business. If it is, then your business could push on in no time at all.
Crowdfunding
Crowdfunding is the final alternative financing option that you have to consider. It’s a very modern and new form of getting hold of money for your business. And more and more business owners are now turning to it when they need cash. This is when people who are interested in what your business is planning to do put their own money forward. This can be set up on a site like Kickstarter. And then the project can be publicised and promoted to get more people to invest their money. It can be a really good way of getting money without turning to a rich investor or a bank.
