Small businesses have various options when it comes to looking for money to support their startup and growth objectives. Once you've run out of 'friends, families and fools' to invest in your vision, you can look to extended funding opportunities that best fit your needs.
Here are some potential financing options and a quick overview to how they work:
Direct funding: With direct funding, cash is given out for activities such as training, employment or capital investments schemes so as to give back to the society. This type of funding requires the recipient to combine it with other funds they may have of up to 50%. Therefore, these funds help a lot in complementing any other source of money entrepreneurs may have such as loans.
Soft loans: These are special types of loans with much generous terms and conditions than other funding options, thus the word ‘soft’. Soft loans for instance, may have no interest to pay at all and if there is, the interest rates may be less and the repayment period could be long.
Funding can be critical to the success of starting or growing a small business. The key is to be realistic about the short and long term goals as well as the increased business potential with funding in place. This way you can align the best possible funding solution that fits your needs and repayment terms.
Often small businesses need more than funding to be a success. Accelerators and Incubators can provide different levels of direct and indirect assistance through experienced advisors to help entrepreneurs get their businesses on track. For more on how Business Accelerators vs. Business Incubators can contribute to start up growth, check out How to Accelerate Startup Success.