What Business Finance Options Are Available Today?

Business Finance Options For You:

For most company owners, there will come a time when they need to secure business finance. Perhaps you are thinking about starting your own business and you need some money to get it up and running?

your business finance options

 

Maybe you already have an established company and you want to brand overseas, open up a new department or invest in a new product? No matter what position you find yourself in, this post can give you the helping hand you require.

Maybe you already have an established company and you want to brand overseas, open up a new department or invest in a new product? #businessfinance Click To Tweet

Establish How Much Money You Are Going To Need

Before you can start looking into the different options that are available, you are going to need to establish how much money you need. A lot of people go through the hard work of securing finance, only to discover they have totally underestimated the amount they require.

business finance options

 

This is often the case when it comes to starting your own business. Experts like Your Company Formations can assist you with all of the legalities in this regard, helping you to understand the process you are going to need to go through so that you can accurately determine the expense.

On the flip side, simply borrowing more money because it is available to you is never a good idea, as you are going to end up spending more in terms of interest rates and other fees.

A lot of people go through the hard work of securing finance, only to discover they have totally underestimated the amount they require. #businesstips Click To Tweet

What You May Need To Buy For Your Business

  • Insurance. Since I became full time here back in August some expenses were not foreseen. Take for example business insurance. To be covered against lawsuits, etc it cost Inspire To Thrive just over $1,000/year in special business insurance.
  • TaxesThis is a big one here in Rhode Island. Business taxes eat up approximately 40% of your profit. ☹
  • Tools of the Trade. Oh yes, tools for social media management and content marketing can add up. I’ve gone premium with plugins, Canva, Triberr, Scoopit, domain and hosting to mention a few along the way.
  • Marketing. Next, I purchased pens and business cards. Then at the end of the year I joined the local Chamber of Commerce. Let’s not forgot those Facebook and Twitter ads too. If you do not market your business people will think you are NOT in business!
  • Vehicles and Mileage. Visiting clients takes miles going back and forth as well as needing a reliable vehicle.
  • Office Equipment. Just this morning I went out to purchase a new chair as my body was feeing the effects of sitting a lot. I can’t wait to use it when it arrives tomorrow.

Therefore, these are just some of the things you will need to run an online business. As Ryan Biddulph says do spend the money on your own domain and hosting. This tip is so important for online businesses!

Finally, even offline business with a blog or website should have their own domain and hosting. I’m amazed how often I run across local businesses without them today!

If you do not market your business people will think you are NOT in business! #business #marketing Click To Tweet

What Options Do You Have When It Comes To Business Finance?

Hence, there are many different options available to you when it comes to business finance. There is no right or wrong answer, or magical formula.

It is all about determining what is going to be right for your company and the unique situation you find yourselves in. As with anything, what is right for one business most definitely is not always right for the other.

Ideally, here are some of the main options you can select from:

Business finance from a bank.
Borrowing from friends and family.
Business grants.
Lending from finance companies. 
Using your savings.

These are the five most common options you have at your disposal. If you find yourself on this page, then it is unlikely that you have the savings to draw upon nor do you have friends or family members that are in a position to help you. 

how much money do you need

In fact, this is an option that doesn’t appeal to a lot of people because they don’t want to be indebted to someone close to them. (I know I would NOT. It can damage relationships!) 

Aside from this, you could try and get a business grant. It is always worth a try, but you need to be realistic. These grants are exceptionally hard to get your hands on, so you certainly shouldn’t pin all of your hopes on this.

Finally, don’t rule this option out until you have explored it though. Lending from a finance company is a much easier approach to go down then lending from a bank, as banks tend to have much stricter criteria in place in terms of lending.

Aside from this, you could try and get a business grant. #businessfinance Click To Tweet

Important points to consider when lending money from a finance company

It is important to end up with the right loan for your requirements. For example, you need to sit down a draw up a financial plan and determine how much money you really require.

Of course, you are going to end up paying back more than you have borrowed, so discover the rate of interest, and make sure you can afford the repayments. Therefore, you also need to assess the repayment terms too.

How long do you have to pay the money back? Will you make repayments on a monthly, quarterly or yearly basis? If you consider these factors, you can be confident that you will end up with the right loan for you.

You need to sit down a draw up a financial plan and determine how much money you really require. #businesstip Click To Tweet

In Conclusion on What Are Your Business Finance Options

Securing business finance can be difficult, but if you have the right attitude and you use the right options that are available to you, you can make it much easier than you imagined.

easy financing for you

You always need to start out by determining how much money you are actually going to need. Then, once you have done this, you will be best placed to explore the options that are available to you.

Therefore, you will know what is accessible and what isn’t, so that you can work out how to put your best foot forward.

I’d love to know in the comments below if you have ever had to secure business financing for your online or offline business. Please leave a comment below so we can discuss.

Lastly, if you business is in finance be sure to check out our marketing tips for financial businesses!

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Lisa loves helping others to thrive online through Social Media, Blogging, and SEO. What good is knowledge if you cannot share it with others? She has 30+ years of experience in marketing/advertising with 9 years of experience in content marketing, social media, blogging, and SEO. Check out her latest eBook "How to Tweet and Thrive on Twitter" now on Amazon.

  • Hi Lisa,
    Securing funds for one’s business can be a hefty task considering all the calculations involved. Sometimes expenses and taxes can be so overwhelming that they eat up the profits and businesses go in loss.
    One should always keep the risk factor in mind while trying to secure a business loan or finance since things always move in the right direction. But I surely hope and wish that they do for you.
    Thank you for sharing this with us.
    Regards
    Vineet Saxena

  • Hi Lisa,
    Some folks make the error of not accurately evaluating their business before going in for funding. A few hours ago, I was talking with a friend about setting up a local business. He’ll be doing the costings. Though we have both put together some funds, we may extend to some external source of funds if what we have isn’t up to the value.

    One piece of good news is starting some online businesses is not as expensive these days as before. Domain names and hosting used to be very expensive. Getting a qualified web designer too was a huge task. But as we know these have all been broken to pieces these days.

    BTW, looks like yourcompanyformations.co.uk only serves the UK market 😉

    • Hi Enstine, oh yes and if they do they may forget some of the expenses associated with running a business. I go through mine monthly now and really try to focus ahead.
      True but sometimes you get what you pay for as well. It depends and if you know folks they will work with you. I’m still going to try out the 2nd website with you. I need to search for domain name ideas and I’ll be in touch soon on it 🙂
      Ah, yes. I will have to see if there are others too, thanks Enstine. Have a wonderful day ahead there.

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