While some business owners bootstrap their ventures, others turn to outside funding to grow their businesses. There’s a lot to consider if you go this route, including how much money you need, the loan’s repayment terms, your credit score and when you need the funds. Not every kind of funding will work for your business, so determine exactly what your business needs in order to make an informed decision.
These are some of the financing options available to small business owners:
- Traditional loans from banks
- Business lines of credit
- Invoice factoring
- Merchant cash advances
- Peer-to-peer lending
Small businesses have several funding options, including bank loans, grants and alternative lenders.
Utilize experts, at the end of the day, your most reliable tool for financial planning is old school – the expertise of another person. Consultants, financial advisors, your accountant, a CPA and a bookkeeper are all potential resources.
“A lot of business owners don’t manage their finances because they don’t understand it,” Moltz said. An expert’s help with putting together your financial statements, evaluating your expenses and forecasting your profits can save you a lot of time and money in the long run.
Your time and money are precious, so you want to ensure they are spent effectively. You should take this same attitude with your business’s financial health. Rushing your business’s potential for success will only hurt it in the long run. Instead, dedicate significant time, energy and maybe even money to maintaining the financial health of your enterprise.
If you aren’t a true expert in managing finances, consider hiring experts like financial advisors and accountants to steer you in the right direction.