Best Funding Options

Funding yourself or your business is a challenge that a lot of business owners have to face. Other than the fact that you might be a new company, there are also certain factors that dictate the feasibility of funding such as:

• Credit Scores and Credit History
• Track Record with Lenders and Funding Companies
• What You’ll be Using the Funds for

So in the process of getting funding for your business, what are the top choices for it? What are the top financing options you can think of when you need funds or when you need money?

Funding Options

Loans and credit aren’t the only ways you can get funds. In fact, if it’s going to be used for business, you can approach and seek help and assistance from investors, friends, and family members, and even interested lawyers and businessmen who are capable of helping.

Angel Investors

One of the ways most business owners take is by seeking help from Angel Investors. An angel investor is the type of person that usually has a high value of net worth. These are the whales – the angels who can fund businesses and make everything possible for them.

Crowdfunding

The opposite of angels are the investors you’ll find in crowdfunding campaigns. These are the newbie investors who are trying the market out. They’re looking for businesses that have the capability to become big – and that’s where their money will be.

Most of the time, investors in crowdfunding groups are new investors and they are rarely high net worth.

Funding and Lending Companies

In the choices we have for the top funding options, we’ll be erasing out the typical and the traditional banks because bank loans are rarely effective when you need funding for your business. In most cases, business owners turn to funding and lending companies when they need funds.

Other than the fact that they release funds faster and quicker, they can allow a borrower to gain and acquire higher loan amounts than what they intended to have.

Merchant Cash Advances (MCAs)

Another technique on how business owners can acquire funds is through merchant cash advances (MCAs) or also known as invoice advances. It’s when the borrower sells their future sales to get a lump sum amount of cash that can be used for business growth or as a way to purchase assets or other properties.

But among these, what would be the best and the top option for funding? What would financial experts say? The answer is not with what financial experts and gurus would say – it’s going to be what you’ll be confident of.

If you are fine with investors sharing a percentage of your company with you, then you should definitely go with investors. Other than them providing the funds you need, they can also help you in terms of managing and properly running your business.

Otherwise, the next best option is through funding and lending companies. It is a stereotype that lending companies have higher interest rates – it’s true, yes, but there are companies that have moderated how they apply interest rates on loans.

Like with us here at SoFlo Funding, we have considerate and reasonable interests on the loans we offer our clients.