Raising capital | Company Formations 4 U

5 Ways to get Capital for your Small Business

If you are just setting up a new business or expanding a current one you may consider applying for a business loan from your bank. You will need to have your business plan in place and be able to demonstrate that you will be able to repay the loan. Other factors are taken into consideration such as your credit history and/or the credit history of your business if it already exists. The main benefit here is that once your loan has been agreed with the bank funds are immediately available.
Liquidate your assets to raise money either by selling your own personal items i.e. car, jewellery anything of value that would raise money. If you have any investments or shares you may consider you may consider their worth and selling and/or liquidating those to raise capital.
Find a venture capitalist also known as 'business angels' who agree a sum of money to pay for your business start up and are given part ownership in return or alternatively are paid a percentage from your business profits.
Consider using personal finances from saving accounts or retirement accounts this is often the first port of call for raising finances for a small business start-up.
Government loans should also be considered for new businesses. The Small Business Administration provides a resourceful way for new business owners to raise capital and is considered one of the leading resources for new businesses start-ups.