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You can deliver a new revenue stream for your small business by selling online. Learn how to get started.<\/p>\n
<\/div>Read More<\/i><\/a> Credit cards are one of the more risky – but agile – small business financing options on this list.<\/p>\n Grants and loans often have a lengthy application process. And there may be restrictions on how you use the money. A small business credit card can be used whenever needed and for almost any business purchase.<\/p>\n Credit cards are a double-edged sword – agility on one side and high-interest rates on the other. (Always negotiate the lowest interest rate you can. And take the time to shop around. It’s worth it.)<\/p>\n Luckily, it’s relatively easy to get a small business credit card. However, your credit history will determine the interest rate you qualify for.<\/p>\n You don’t need a formal business structure<\/a> to apply for a business credit card. Sole proprietors can apply, too.<\/p>\n And you don’t need a business credit history. Your personal credit history will be used to calculate your interest rates.<\/p>\n Remember that nearly all small business credit cards require the business owners to be personally liable for the credit card charges if the company cannot pay.<\/p>\n Used responsibly, credit cards are good for building your business credit<\/a>. Just make small, predictable purchases and pay them off on time. And, if you have to use a credit card for a larger purchase, be sure you have a plan to repay that debt.<\/p>\n Moreover, for businesses recovering from financial setbacks like bankruptcy, it’s crucial to understand strategies for credit repair. One vital aspect is learning how to get bankruptcy off your credit report early<\/a>. This can involve negotiating with creditors, adhering to a structured repayment plan, or seeking legal financial advice. Successfully managing this can significantly improve your credit score, enhancing your eligibility for future financing options and maintaining financial health.<\/p>\n A business line of credit is like a hybrid between a loan and a credit card.<\/p>\n You can access a lump sum amount with a line of credit – like a loan. But you only repay (and pay interest on) the amount you use – like a credit card.<\/p>\n And, as long as you pay back the line of credit according to the agreed-upon terms, you can continue to dip into that money again and again. Your line of credit remains to wait in the wings to absorb unforeseen future expenses. This is in contrast to a loan that can only be spent once. Unlike personal options such as hardship loans<\/a>, which are designed to help individuals restructure debt, a business line of credit provides revolving access to capital you can reinvest in operations.<\/p>\n A credit line is ideal for covering unexpected purchases beyond the scope of a small business credit card. It’s also great for helping to smooth out cash flow from month to month.<\/p>\n Still unsure if a business loan or a line of credit is the right small business financing option for your business? Give this article from Lendio<\/a> a read.<\/p>\n Crowdfunding platforms like Kickstarter and Indiegogo allow members of the public to invest money in your business. This is a newer option for business financing, and it can work well for certain types of businesses (especially businesses that create products).<\/p>\n Campaigns on these platforms are held for a specifically defined goal instead of just asking for money you will spend later on… something. So, if you have a specific goal that would appeal to a crowd, consider starting a crowdfunding campaign.<\/p>\n As loans and credit lines have unique terms and requirements, so do the various crowdfunding platforms.<\/p>\n These are just a few of the differences between the two platforms. As always, do your research and make the choice that will serve your business best.<\/p>\n And, in exchange for the money you receive, plan to invest some time caring for your campaign. Communicate with your backers regularly, offer rewards and benefits, and update your campaign page as appropriate. Your engagement will drive more donations and make your backers feel good about their contributions.<\/p>\n Unlike most small business financing options on this list, creating a joint partnership<\/a> doesn’t rely on applying for money or credit. Instead, this strategy involves two complementary businesses working together to help each other.<\/p>\n A joint partnership occurs when two businesses temporarily join forces to share resources and achieve a common goal. Those resources may be information, audiences, finances, or products or services.<\/p>\n If you find your business waning, don’t overlook the possibility of forming a joint venture to help buoy your performance.<\/p>\n Mary Hall of Investopedia explains<\/a>:<\/p>\n When a joint venture is successful, participating companies share in the profit as agreed upon in the initial contract. Likewise, a failure in a joint venture results in all participating companies realizing their portion of the losses.<\/p><\/blockquote>\n Both partners are invested in a joint partnership’s success because they stand to benefit – and neither party wants to suffer a loss. But, even if your joint endeavor does fail, your losses are cut in half (or whatever terms you’ve agreed upon).<\/p>\n Because of this tactic’s unique and specific nature, we can’t provide you with a list of businesses to partner with. But we can offer you this advice…<\/p>\n Your goal is to find a business complementary to – not competing with – your company.<\/p>\n Then develop your ideas for the partnership before approaching them. You’ll be far more likely to win their buy-in if you’ve done your homework beforehand.<\/p>\n Learn 5 strategies to help your small business survive a recession.<\/p>\n <\/div>Read More<\/i><\/a> Making the best decisions for your small business financing is hard if you don’t understand the complete picture.<\/p>\n That’s where finance apps can help. There are payroll, point-of-sale, accounting, and finance tracking apps that can help you manage your entire budget at the big-picture level.<\/p>\n Every business is unique, so we can’t tell you which apps will best fit you. But it’s worth the time to research your options and find a collection of apps that cover all of your major bases and provide you with a coherent picture of your business’s finances.<\/p>\n If you can integrate those apps directly or use a third-party tool like Zapier, even better.<\/p>\n This list<\/a> from the finance gurus at Fundera is a great resource to help you get started.<\/p>\n Angel investors and venture capital investors provide another business financing option.<\/p>\n You\u2019ll need to sell business investors on the financial viability of your business. And you’ll need a business plan if you want angels or venture capital.<\/p>\n But know this is a tough path to raising funding for most small businesses. Venture capital firms and angel investors are looking for billion-dollar exits, and most small businesses aren\u2019t tackling problems big enough that justify such exists.<\/p>\n These more sophisticated investors will be critically looking at your business to measure whether you’ve created a strong brand identity<\/a>, have a good revenue model, and whether your products or services give you a compelling competitive advantage.<\/p>\n![](\"https:\/\/images.crowdspring.com\/blog\/wp-content\/uploads\/2020\/03\/27125439\/logo-pink-blue.png\"\/){kind=logo}
<\/div>\n3. Business credit cards<\/h3>\n
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<\/div>4. A business line of credit<\/h3>\n
5. Crowdfunding platforms<\/h3>\n
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6. Joint partnerships<\/h3>\n
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Want to recession-proof your business?<\/h3>
<\/div>\n7. Finance apps<\/h3>\n
8. Angel investors and venture capital investors<\/h3>\n
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