How to Get Funding to Start a Business

Not all businesses are started from the money of the owner, in fact, 24% of business owners relied on loans when they started their business; this is considerably a large amount of businesses in the entire spectrum of ventures.

So most of you may ask, can you apply for a loan to start a business? Is this possible? Well, if the percentage of the businesses that started out by taking a loan out have done it – why can’t you? In this article, we will be discussing how to get funding to start a business as well as the different loans you can take.

Types of Funding Business Owners can Take

Loans aren’t the only thing aspiring business owners can take if they need to get funding to start their own business. In fact, it’s just one of the main sources. Other sources include:

• Asking help from friends and family members
• Approaching legit investors
• Through venture capitalists (VCs)
• Crowdfunding
• Banks, the Small Business Administration (SBA), and credit unions
• Business and lending companies

Among the most popular of all choices would be “love money” or money from friends and family members. I mean, who would be the first set of people you’d ask? It would most likely be the closest to you and that’s going to be your friends and family members.

Another option is by talking and taking on investors. It could either be angel investors or people who are high net worth types of people; venture capitalists or groups of investors, businessmen, and other wealthy people.

Then, here comes the typical way – applying for loans. This is not the most unpopular either, in fact, many business owners choose this option over investors so that they wouldn’t have to share a percentage of their business to other people.

Where can I Get Funding for a Startup Business?

If you’re running on the dilemma of where you can go for a startup business loan, you have your options narrowed down. A few years back, banks strayed from providing startup businesses some funds as they saw that it’s more profitable to lend established businesses.

That being said, the options get narrowed down again – you have funding companies, credit unions, and the SBA. The SBA is the agency all business owners want to work with. Their main task is to improve small businesses because they produce millions of jobs per year. However, just like banks, applying for a loan with the SBA could be difficult; the same thing goes with credit unions.

They want established businesses running to them for funds because they know that these businesses have the capacity to pay.

So have we answered your question on how to get funding to start a business? Or have we not yet? Well, you can definitely count on us here at SoFlo Funding to provide the financing you need for your startup business.

Who We Are

SoFlo Funding is a business funding company, a lender for short that provides aid and support to new businesses the same way we provide assistance to well-established businesses and entrepreneurs. We are considered as one of the best options in funding startup businesses because:

• We do not ask for a heap of requirements
• Our qualifications are not as ridiculous as how other institutions have set it
• Our approval time and rate are fast and high, respectively
• We can provide funds of up to $300K for unsecured loans – and it can go high as $500K and above for secured loans