5 ways to fund your small business
If you’re running a small business and need funds to either run the day-to-day operations of the business or to expand, there are a few different options for funding.
The typical way of financing a small business is by getting a business loan. For this method, a small business generally needs to apply with a bank or financial institution.
Business credit cards
Using a business credit card is a simple way of accessing credit for purchases and as additional funding for the business. However, this is normally a short-term solution and comes with high costs if you don’t pay off the funds quickly.
This option releases funds that are tied up with unpaid invoices. This is useful if you’re struggling with cash flow.
This kind of finance is often used to fund machinery and equipment that will be purchased for the business. This is beneficial to businesses that find themselves with an opportunity to expand but are unable to because of a lack of capital.
Trade financing normally comes from a revolving line of credit from a lender. This allows a business to maintain its working capital while assisting with the funding of new stock, materials or inventory.