Niraj Govinda Shrestha
Best Unfailing Sources for Small Business Funding
When you need funding for your business, where do you go to? Well, when it comes to small business funding, there are plenty of ways to get funds, and each of these ways has its unique advantages. According to Niraj Govinda Shrestha, some business funding sources may be good for a particular type of business while others may be suitable for the next class of business. This depends mostly on the type and preferences of the small business and whether they will approve the funding application or not. For small business owners who are looking for funds, Niraj Govinda Shrestha listed some sources to gain capital fast. Check them out below.
Best Sources for Getting Funds
1. Friends and Family
Whenever you are thinking about starting your small business, friends and family are always the first source that comes to mind. This is because they will know and understand your resourcefulness. Niraj Govinda Shrestha said that you could quickly get your small startup generating an income with a little support from those closest to you. You simply have to be brave enough to ask!
2. Merchant Cash Advance
The merchant cash advance is another way through which you can get funds for your small business. Although it is similar to a bank loan, it usually generates less interest, and it is safer than a bank loan. First of all, Niraj Govinda Shrestha said that it is easier to get your funding application approved with a merchant company like Water Street Capital than with a bank. However, once your business can gross an average of $10,000 per month, you can confidentially apply for up to $500,000 loan! You need to apply online, and you will be able to receive the funds in about three business days. For more profit, you can use the money for different kinds of needs such as expansions, upgrades, advertising, payroll, and more.
The way to refund the loan is also very different from that of the bank, and this makes the option ways to get funds for small businesses. Just like taxes, the lender will agree to repay the loan with a little percentage of their monthly sales. With this percentage, they will automatically take out the interest every month. The rate also varies with the monthly success of the business. If they make more sales, they pay high and vice versa. However, they will pay the loan faster if they are making more profits every month!
3. Crowdfunding
Although there is no "reliable" source, crowdfunding is increasing in popularity over the past few years. According to Niraj Govinda Shrestha, there are many crowdfunding sites where small business owners can visit to get funds for their businesses. The popular ones are Indiegogo and GoFundMe. If you are looking for expansion and if your product is popular enough, you can use crowdfunding to gain backers. However, it is not always a success because a business gains nothing if it doesn't receive enough investments from attaining its goal. If you need significant funds for your business, you have to look into other options. This is because you cannot get large financial requests on crowdfunding. Crowdfunding has always been known to be effective in the past, and some businesses have used it to generate millions of dollars!