How to Navigate the World of Small Business Funding
Your business is how you make your livelihood, but finding business funding can seem impossible. It requires a lot of time to find investors willing to fund your entrepreneurial dream. Small and startup businesses have it particularly rough when trying to find funding. Since the U.S. Small Business Administration grants loans so rarely, it forces small business owners to find other means of funding their businesses. Despite these challenges, you can still navigate the world of small business funding to acquire the money you need.
Small Business Funding Issues
Small businesses have it tough when it comes to amassing funding. In fact, 82% of small businesses fail because they cannot receive adequate funding. Part of the blame falls on the strict qualifications of SBA loans. Their specific requirements can make future prospects seem like a pipe dream. Other reasons for loan denial include low credit scores, lack of collateral, and ineligible industries. Furthermore, it takes an average of 60 to 90 days for this type of small business funding approval. Even if you manage to obtain one, it may be months before you receive the money from the SBA loan. And that’s just for small businesses!
Startup Business Funding Issues
Startup business can also have a particularly difficult time obtaining small business funding. Most banks refuse to offer an SBA loan to startups because, on average, nine out of ten of them will fail. The paradox is that many fail specifically because of a lack of funding! While it’s possible to receive a loan through family, friends, or even a crowdfunding site, that isn’t always the most viable option. With all that is stacked against you, what can a small business owner or aspiring entrepreneur do?
Pinpoint Your Options
As mentioned earlier, asking friends and family is an option. Many are willing to offer small business funding with the option of owning part of the company. However, it’s understandable if you don’t want to take that route. Personally, I wouldn’t want to ask friends or family, either. Another small business funding option is to find investors who are willing to give you money in exchange for a return on their investment. When several small businesses look for funding from a small pool of investors, this creates difficulty. So, what can you do?
Since small businesses are such an integral part of our economy, we want them to find funding without an issue. This is why we suggest you check out our partners. They will help connect you with willing investors. Because smart shopping is so important, our partners allow you to compare quotes so you know you’re getting the best deal possible.