Starting your own business can be a daunting task. Even if you have the most marketable idea in the world, nothing can be done until you’ve accumulated enough funds to get your startup actually running. Luckily, there are many ways to get the money you need. Consider these sources:
- Friends and family. This is the first place most entrepreneurs look, after their own savings. Take care when accepting money from loved ones, though: Make sure to be clear about how willing you are to have them involved in the business, as well as the level of risk involved. Another factor to consider is whether your friends or relatives are giving you a gift or expect to be paid back. Make sure that all parties involved understand and agree on the terms.
- Business loans. Loans can come from banks, private lenders, or government sources. You will need to have a solid business plan and collateral available.
- A line of credit. Establishing a line of credit at a bank is a great way to build your business’s credit rating and get you through lean times.
- Crowdsourcing websites. Crowdsourcing has become quite common, and can be a great way to not only raise money, but to build up a community of potential customers.
- Home equity loan. If you have equity above what you owe on your mortgage, and interest rates are low, this can be a sensible choice.
The information mentioned in this article is for informational purposes only, is intended to provide general guidance and does not constitute legal or tax advice. Each person’s situation is unique and may materially differ from the information provided herein. You should seek the advice of a financial professional, tax consultant and/or legal counsel to address your specific needs before any financial or other commitments regarding the issues related to your situation are made. Popular Bank does not make any representations or warranties as to the content contained herein and disclaims any and all liability resulting from any use of or reliance on such content.