#1 Your own blood, sweat and tears<\/h2>\n
Yes, your own energy can be one of the best finance options for your new business. Many entrepreneurs use this finance method without even being fully aware of it.<\/p>\n
What\u2019s known as \u201csweat equity\u201d is your choice to using your own unpaid labor and other resources to get what you need.<\/p>\n
Therefore, instead of using money to hire a marketing agency or buy an app, you can do it all yourself.<\/p>\n
Obviously, it will take you much longer to create an app than it would a professional, and your marketing mix may not work out very well for the first few weeks or months.<\/p>\n
Nonetheless, it\u2019s cheaper (free in a way) to do it yourself, and it also gives you that priceless asset known as \u201cexperience.\u201d<\/p>\n
#2 Barter and trade<\/h2>\n
Another innovative way for you to finance your new business is by trading your skills for another without exchanging any money.<\/p>\n
You can understand this idea by understanding first of all what you need financial assistance for: to buy the goods and services that you need.<\/p>\n
Some things you can\u2019t practically trade for (well, maybe you can), like rent and utilities, but other things, like web design, you may be able to negotiate.<\/p>\n
For example, if your new business is an SEO agency, you can offer your services in return for a free, custom-made website.<\/p>\n
It\u2019s a win-win, and you \u201cfinance\u201d your business without needing a cent.<\/p>\n
#3 Crowdfunding<\/h2>\n![\"Kickstarter](\"https:\/\/i0.wp.com\/www.invoiceberry.com\/blog\/wp-content\/uploads\/2017\/12\/kickstarter-crowdfunding-e1497992324386.png?resize=690%2C373&ssl=1\")
Kickstarter is one of the most popular crowdfunding finance options available for any new business<\/figcaption><\/figure>\nOK, now to the more established finance methods. Crowdfunding is the method by which you ask the public for financial assistance for your business idea.<\/p>\n
Each person gives any amount they choose and in return they get a reward (the product you\u2019re working on). In that way, it\u2019s like pre-ordering a product.<\/p>\n
This is an effective option because you don\u2019t need to approach a few people with a request for big sums of money.<\/p>\n
Instead, you are asking many people for small amounts of money, which is very effective, as can be seen with the rise of Kickstarter <\/a>and Indiegogo<\/a>.<\/p>\n#4 Kickfurther<\/h2>\n
Websites such as Kickfurther<\/a> (similar to crowdfunding) are made specifically for businesses, however. Instead of investors getting a reward for the money they\u2019ve put up, they get part ownership of the inventory.<\/p>\nWhen the inventory is finally sold, the investors get their money back plus any profit.<\/p>\n
#5 Invoice factoring<\/h2>\n
Invoice factoring is the process by which companies can get money for their invoices that haven\u2019t been paid yet.<\/p>\n
Basically, if you have sent out invoices that your customers haven\u2019t paid yet (for whatever reason), you can use invoice factoring companies to go after those invoices.<\/p>\n
When those invoices are paid, you give a percentage or flat fee to the invoice factoring company.<\/p>\n
\n\t\t\t\t\t\t\t\n\t\t\t\t\t \t\t\t\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t \t\t\t<\/a>\n\t\t\t\t\t \t\t<\/div>\n \t\t\t\t\t\t\t\n \t\t\t\t\t\t\t\t33 Finance Expert Tips for Millennial Entrepreneurs<\/span><\/a>\n \t\t\t\t\t\t\t\tMillennial entrepreneurs are the next leaders of the business world, and these 33 finance experts offer their advice to help young entrepreneurs succeed.<\/span>\n \t\t\t\t\t\t\t\t\n \t\t\t\t\t\t\t\tREAD MORE<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n#6 P2P (Peer-to-Peer) Lending<\/h2>\n
Loans don\u2019t have to be off the table, but you also don\u2019t need to go to a bank to get a loan for your small business.<\/p>\n
Instead, you can get loans from other individuals without any intermediary organization.<\/p>\n
There is an inherent risk for the lenders, as they are normally not backed by much guarantee. However, the return on their investment is better than other more traditional ways, and the rates are better for businesses.<\/p>\n
#7 Microloans (or micro-financing)<\/h2>\n
Microloans, also known as micro-financing, allows businesses, such as your own, to get smaller loans from non-bank institutions.<\/p>\n
This form of loans actually started in developing nations as an innovative way to get funding for borrowers.<\/p>\n
It was so effective that it quickly caught on in other parts of the world. You can get microloans from private companies (PayPal Working Capital<\/a>), as well as government institutions (the US SBA Microloan Program<\/a>).<\/p>\n#8 Purchase order financing<\/h2>\n
One of the biggest problems for startups that sell products is the difficulty for scaling up.<\/p>\n
They simply cannot accept a large new order because they don\u2019t yet have the required cash to build the product and deliver it.<\/p>\n
That\u2019s where purchase order (PO) financing companies come in handy, as they\u2019ll be able to provide the funds directly to the suppliers.<\/p>\n
#9 Government grants<\/h2>\n![\"The](\"https:\/\/i1.wp.com\/www.invoiceberry.com\/blog\/wp-content\/uploads\/2017\/12\/government-grants-new-business-e1497992576449.png?resize=690%2C345&ssl=1\")
The US SBA has some great grants for your new business<\/figcaption><\/figure>\nDepending on where you are in the world, you may be able to meet your financing requirements with a government grant.<\/p>\n
For example, the the US Small Business Administration provides grants with its Small Business Innovation Research<\/a> and Small Business Technology Transfer<\/a> programs.<\/p>\nYou\u2019ll have to meet federal R&D goals with a high potential, and then you\u2019ll hav e a good chance.<\/p>\n
#10 Lines of credit<\/h2>\n
You can go with private companies to give you lines of credit for certain amounts. For example, Kabbage<\/a> offers lines of credit for $2,000 – $100,000.<\/p>\nYou have 6 \u2013 12 months to pay the money off, with monthly fees of 1-12%. The ranges are dependent on the type line of credit you can get.<\/p>\n
#11 Merchant cash advances<\/h2>\n
There is also the option to get merchant cash advances for about 50 \u2013 250% of your monthly credit card limit.<\/p>\n
Your small business will repay loans by giving the lender a certain, fixed percentage of all the future credit card receipts until you pay off the loan.<\/p>\n
\n\t\t\t\t\t\t\t\n\t\t\t\t\t \t\t\t\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t \t\t\t<\/a>\n\t\t\t\t\t \t\t<\/div>\n \t\t\t\t\t\t\t\n \t\t\t\t\t\t\t\t21 Ways for Small Business Owners to Save Money [Expert Roundup]<\/span><\/a>\n \t\t\t\t\t\t\t\tWe reached out to successful small business owners and asked: what's the best way you save money in your business? Read their expert answers here.<\/span>\n \t\t\t\t\t\t\t\t\n \t\t\t\t\t\t\t\tREAD MORE<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
OK, now to the more established finance methods. Crowdfunding is the method by which you ask the public for financial assistance for your business idea.<\/p>\n
Each person gives any amount they choose and in return they get a reward (the product you\u2019re working on). In that way, it\u2019s like pre-ordering a product.<\/p>\n
This is an effective option because you don\u2019t need to approach a few people with a request for big sums of money.<\/p>\n
Instead, you are asking many people for small amounts of money, which is very effective, as can be seen with the rise of Kickstarter <\/a>and Indiegogo<\/a>.<\/p>\n Websites such as Kickfurther<\/a> (similar to crowdfunding) are made specifically for businesses, however. Instead of investors getting a reward for the money they\u2019ve put up, they get part ownership of the inventory.<\/p>\n When the inventory is finally sold, the investors get their money back plus any profit.<\/p>\n Invoice factoring is the process by which companies can get money for their invoices that haven\u2019t been paid yet.<\/p>\n Basically, if you have sent out invoices that your customers haven\u2019t paid yet (for whatever reason), you can use invoice factoring companies to go after those invoices.<\/p>\n When those invoices are paid, you give a percentage or flat fee to the invoice factoring company.<\/p>\n Loans don\u2019t have to be off the table, but you also don\u2019t need to go to a bank to get a loan for your small business.<\/p>\n Instead, you can get loans from other individuals without any intermediary organization.<\/p>\n There is an inherent risk for the lenders, as they are normally not backed by much guarantee. However, the return on their investment is better than other more traditional ways, and the rates are better for businesses.<\/p>\n Microloans, also known as micro-financing, allows businesses, such as your own, to get smaller loans from non-bank institutions.<\/p>\n This form of loans actually started in developing nations as an innovative way to get funding for borrowers.<\/p>\n It was so effective that it quickly caught on in other parts of the world. You can get microloans from private companies (PayPal Working Capital<\/a>), as well as government institutions (the US SBA Microloan Program<\/a>).<\/p>\n One of the biggest problems for startups that sell products is the difficulty for scaling up.<\/p>\n They simply cannot accept a large new order because they don\u2019t yet have the required cash to build the product and deliver it.<\/p>\n That\u2019s where purchase order (PO) financing companies come in handy, as they\u2019ll be able to provide the funds directly to the suppliers.<\/p>\n Depending on where you are in the world, you may be able to meet your financing requirements with a government grant.<\/p>\n For example, the the US Small Business Administration provides grants with its Small Business Innovation Research<\/a> and Small Business Technology Transfer<\/a> programs.<\/p>\n You\u2019ll have to meet federal R&D goals with a high potential, and then you\u2019ll hav e a good chance.<\/p>\n You can go with private companies to give you lines of credit for certain amounts. For example, Kabbage<\/a> offers lines of credit for $2,000 – $100,000.<\/p>\n You have 6 \u2013 12 months to pay the money off, with monthly fees of 1-12%. The ranges are dependent on the type line of credit you can get.<\/p>\n There is also the option to get merchant cash advances for about 50 \u2013 250% of your monthly credit card limit.<\/p>\n Your small business will repay loans by giving the lender a certain, fixed percentage of all the future credit card receipts until you pay off the loan.<\/p>\n#4 Kickfurther<\/h2>\n
#5 Invoice factoring<\/h2>\n
#6 P2P (Peer-to-Peer) Lending<\/h2>\n
#7 Microloans (or micro-financing)<\/h2>\n
#8 Purchase order financing<\/h2>\n
#9 Government grants<\/h2>\n
#10 Lines of credit<\/h2>\n
#11 Merchant cash advances<\/h2>\n