Your business could do a lot with some extra funds – renovate, launch new products, increase the marketing budget. Whatever you’ve got planned, here are a few simple ways to find affordable finance for your business.
If your product or service could appeal to lots of different people, crowdfunding is an accessible way to secure many small investments.
Set up a campaign on a crowdfunding site (Kickstarter and IndieGogo are the biggest) and tell the world what you want to create or develop. The more information you provide and the better incentives you can offer, the more likely you are to receive the investment you need from people who are interested.
- Easy to set up.
- People only need to invest small amounts.
- Your business needs to appeal to a lot of people to be fully funded.
- You’ll need to offer incentives to encourage people to invest.
Find an investor
If an investor sees big potential in your business, they’ll help you with funding. Angel investors choose to invest their wealth in startups and new innovations, in return for a stake in the business. Venture Capitalists are similar, but will often want to be involved in decision-making within the business too.
If you’re happy to give a new person some control, finding an investor could be a good option.
- If an investor sees potential, they’ll provide all the cash and support you need.
- Investors bring their industry expertise to your business.
- You’ll need to keep reporting growth and progress.
- Some investors will want a big stake in your business.
Friends and family
People you’re already close to might see the potential in your business and want to invest their own money. The terms are up to them and you – some will want to see a small return on their money, others will give cash as a gift.
- Money’s often given with no strings attached or simple terms – they just want to see you succeed!
- Mixing business and family/friends doesn’t work for everyone.
- You’ll need to draw up a contract or agreement you’re both happy with.
Lots of businesses are looking for fast, alternative ways to put cash in their business. This includes peer-to-peer investment, equity-based crowdfunding, invoice trading and more.
As long as you use a trustworthy platform, you can benefit from fast finance, easy online applications, and brand new financial technology.
- Usually faster and easier than traditional loans.
- All the terms and costs are usually agreed up front.
- Some platforms and products are newer or riskier than others, so you need to do your research.
Fast finance for small businesses taking card payments
You could get your cash in a few days with Capify’s Merchant Cash Advance. Raise from £3,500 to over £150,000, and repay in small percentages when customers pay on card.
Raise up to 75% of your average monthly turnover with a Business Loan
If your small business doesn’t have a card terminal, the Capify Business Loan can help you raise from £5,000 to over £150,000. You’ll pay it back through small regular repayments for 6 to 12 months, depending on your turnover.