One of the reasons most potential businesses never get started is due to lack of funding. Especially in today’s slowly-recovering economy, it can be difficult to raise capital for a new venture. However, there are always people willing to invest.
An article from NewsUSA posted on Recordnet.com discusses five different ways you can raise capital for your new carwash:
- Family and friends. Perhaps the most obvious and widely used method, borrowing from loved ones is one of the easiest ways to generate money, but be warned that it can lead to strained or even broken relationships if the business fails.
- SBA Express. While the Small Business Association provides several loan options, SBA Express lets bank-qualified business owners bypass the usual SBA loan application and borrow up to $150,000. In addition, they will inform you within 36 hours of their lending decision.
- Community banks. Large corporate banks cannot be nearly as flexible in their loaning terms as smaller, local banks can. If you need help finding these institutions, the Independent Bankers Association of America has access to 5,000 community banks and can lead you to a potential lender.
- Crowdfunding. Crowdfunding sites such as Kickstarter and Indiegogo are a popular and relatively new way to raise capital. Sign up, set a reasonable funding goal and timeline, and watch day to day to see how many investors pledge to support your project. Note, however, that your project must reach its funding goal before time runs out, or you will not receive any of the pledged capital. In addition, the crowdfunding will retain a percentage of what you raise to cover its fees.
- DPOUSA. DPOUSA is an online platform with a database of over 33,000 accredited investors representing over $500 billion in capital to which client businesses have access 24/7, 365 days a year. The DPOUSA Special Council, made up of 50 professionals from different industries, assists the clients.
Read the entire article here.