The economy is already rough and the last thing you want to worry about is financing your startup. Here are a few tips and ways to get funding for your business.
Personal credit
If you’re starting out, the chances are you won’t be able to get financing from the bank. If you have a good spending limit on your credit cards, this will be the easiest way. The interest rates may be high, but it will be the easiest way to get money right away.
Borrowing from family
This option can get complicated at times. Only borrow if you know you’ll be able to pay the debt back. Also make sure that your family is very aware of the risks of your startup. If they feel that your startup will be a success you’ll have no problem borrowing from them (as long as they have money in the first place).
SBA
The Small Business Administration does offer loans to some businesses. They may be easier to get than from a bank, but you’ll still need a good business plan and some other sort of funding. You can check out their website for more information on their loans.
Prosper.com
Prosper is an online personal lending marketplace. You sign up and request a loan and investors can put up anywhere from $25 or more towards. Once you’ve got the amount you’re looking for from different investors, you’ll sign a contract and start paying it off. The interest rates on these loans depend on your personal credit rating.
If you know of any other small business funding resources, please post them in the comments.