3 Thoughts That Might Spark Your Creative Financing Efforts
Financing can be one of the most daunting aspects of starting a new business or growing a current one, but you don’t have to dread the traditional bank loan anymore. There are many more options for financing today, and a number of them could be ideal for your company. If you’re looking for a different method of creative financing, here are three options that might be worth your time.
1. Crowdfunding
Crowdfunding has exploded in recent years with a number of successful campaigns. If you put in the work and set up a great campaign, you can appeal to a huge audience you may not have had access to yet. Crowdfunding gives everyday people the ability to invest in products and services they believe in, granting the public more power in the business world. You can also use crowdfunding to your advantage if you have a substantial local following. There are several sites to choose from, just be aware of any added fees.
2. Online Lending
One of the most appealing aspects of creative financing is the accessibility. Many options today are available through online lending. There’s no need to get dressed up for an appointment at a bank when you can quickly fill out an application online. Online lending applications can also be processed more quickly. Many of them will have the same feel as a traditional loan, and you may need to make some decisions about your plans for the money upfront, but the convenience can be a big benefit.
3. Venture Capital
Some companies are so innovative and have incredible potential that they need large amounts of money despite the comparatively high possibility of failure. If this description fits your company, venture capital could be the perfect solution. Even though the potential is there, banks may not feel comfortable lending money. However, investors are often willing if they receive a percentage of the company in return. This works for the investor because they can have a say in how they company runs, and it works for the company, who often gets a more experienced mentor that they can consult on important business decisions.
If you run a creative company, it only makes sense that you turn to creative financing. The rigid constraints of traditional lending don’t form the sole doorway to success anymore, providing more and more people with the opportunity to enter the business world. The many available options give you the power of choice, so you can make the decision that best fits with you and your company’s goals.
