Cash flow is the lifeblood of businesses. At times, having sufficient cash to operate may be a challenge. Fortunately, there are many methods to access business funding in order to address cash-flow shortfalls.
Government Programs
Federal, state, and municipal governments are quite supportive of small and start-up businesses. They directly offer a variety of business financing programs to enable entrepreneurs to begin and stay viable. In other cases, government acts as a guarantor on funding types. Some of these include:
Small Business Loans. The Small Business Administration (SBA) offers a variety of loan types, with the SBA 7(a) loans being one of the most popular types. You may qualify for up to $5 million in funding.
Micro-financing. In some municipalities, micro-funding in the form of small loans is available from community development financial institutions (CDFIs).
Funding from Other Sources
Most sources of business funding are carried out in the private sector by banks, credit unions, and capital funding agencies. Some of the most common of these are:
Traditional Loans. Often the first idea that comes to mind, the application process can be detailed and the waiting period long.
Lines of Credit. This option involves a standing maximum loan amount that a business can access at any time.
Venture Capital. Offered by investors looking for a percentage of your business’s future profits
Peer-to-Peer (P2P) Lending. This option involves the lending and borrowing of money to and from other business owners and business peers.
Angel Investing. In this arrangement, an individual interested in the success of the enterprise offers financial support.
Equity Financing. Capital is commonly raised by companies by the selling of stock.
Merchant Cash Advances. This option can be quite useful if your business model relies on credit card sales
Connect with Rustwood Capital
Most businesses need an infusion of working capital from time to time. Rustwood Capital offers numerous financial solutions for small- and medium-sized businesses. Contact Rustwood today to explore your business funding options.
