You may not have a ton of cash to start a business. If this is the case, there are a few different options. These options include Venture capital, asset-based lending, Crowdfunding, and Small Business Administration (SBA) loans. Listed below are some of the different types of business funding. Regardless of the funding option you choose, these methods should be successful for you.

Venture capital

When asking for venture capital, it is important to be proactive and provide the necessary information to the venture capital firms. While erring on the side of over-communicating, it is still wise to prepare the required information and keep track of all processes. For example, it is wise to prepare a capitalization table that identifies the company’s owners, tracks authorized versus issued stock, and tracks unvested rights and options granted to employees. During due diligence, investors want to know exactly what they are getting into, and should be prepared to address any issues.

Asset-based lending

Compared to unsecured loans, asset-based lending offers flexible terms and repayment structures. If you have outstanding debt, an asset-based loan may allow you to increase the credit line over time. Asset-based lenders are not tied to any one growth initiative. The key to applying for an asset-based loan is to communicate your needs and goals with your lender. In addition, you don’t need to have a credit score of 650 or higher.

Crowdfunding

Among the biggest hurdles for starting a new business, lack of money is a key one. While you can always borrow from family or friends, or apply for a business loan, you may not have enough money to begin the business. In such cases, you can turn to crowdfunding to help you overcome this obstacle. But before you do so, it is essential to read about the five considerations when using crowdfunding to start a business.

SBA loans

There are several ways to get funding for your new business. The SBA offers loans ranging from $30,000 to $5 million to qualified companies. The loans are flexible enough to be used for working capital expenses, equipment purchases, and acquisition of assets. Typically, you have seven to ten years to repay the loan, and interest rates are usually between 7-9 percent. However, you may be able to receive much more in these loans than you initially anticipated.

Credit cards

There are many benefits to using a business credit card for startup expenses. These cards are faster than personal credit cards and allow you to charge only what you need. However, using a card for business expenses can come with large interest charges if you don’t pay them off in full. Plus, using a card for business expenses will help you build a good credit profile for your venture. This can lead to better cards and small business loans later on.

Government programs

There are many Government programs to get money to start a small business, but which one should you choose? The right government grant or loan program can give you a leg up in an increasingly competitive business environment. For example, the ongoing COVID-19 pandemic has caused huge damages to businesses of all sizes. The President’s stimulus package offers $1.9 trillion in funding to help these businesses recover. This money comes in the form of loans, grants, and tax credits.