Today I’m going to answer a question that we get from a lot of new entrepreneurs and start-ups. The question is “what is the best funding options available for a new start-up?” That’s an excellent question and one that I had when I started building my first company.
When building a start-up company, most entrepreneurs, when trying to answer this question, think of venture capital or crowdfunding as their primary funding options. However, these options are usually out of reach. Only about 1% of start-ups get funding through venture capital. This is because you’ve got to have a start-up like a Facebook or a Twitter, with a multi-billion dollar growth potential, to justify the risk of venture capitalist investing in your start-up.
The other fact of the matter is that the start-up company needs to start with a lot of traction. To get to a seed, Series A or Series B funding round, you’ve got to have some serious sales, lots of users and proof of your concept and business model. For most companies, receiving this type of funding isn’t a realistic option. However, if it is an option, it can be a great route to take your business from 0-100 miles per hour very fast.
Crowdfunding is another common option that most entrepreneurs think of when their start-up needs funding. However, only about 1-2% of businesses end up getting it. To use crowd funding, your start-up has got to have something unique and eye catching. If you’re inventing a new product that can revolutionize or create a new industry, then crowd funding is a great option. However, the majority of businesses aren’t the next Facebook, Twitter or Tesla.
Most of the time, entrepreneurs are starting a restaurant, an accounting firm, or a flower store. These types of start-ups are not going to get venture capital or crowdfunding money. So where do they get funding, and what’s their best option?
Most start-up companies will first try and go to the bank to get funding. But did you know, when you go to your bank, they are going to want to see two years of profitable tax returns from your business and they will want to use your 401K or a big asset like a real-estate property you own, as collateral to give you a loan. If you have that, then maybe that’s an option. However, it usually takes months to finalize, and as a start-up, you usually don’t have those two years of profitable tax returns. You can also apply for an SBA loan, but they also like to see some high credentials and it will also take months to process.
To answer the question, “what is are the best funding options for a brand new start-up?” the clearest and easiest way, with the lowest interest rates, is to use your personal credit. These options include unsecured term loans, traditional lines of credit, and revolving credit card accounts at 0% interest. A mix of those options will give you the cheapest money (lowest interest rate) with the highest amount possible for your start-up.
That’s what we do at Fundwise Capital, we help get entrepreneurs the absolute best funding possible, that’s our guarantee. We don’t take kickbacks from other lenders and other groups; which means we can legitimately tell you what the best funding options are and then actually get you that funding. This is what we’re passionate about. We fight like a lion to do that every single day. We’re obsessed with doing this for entrepreneurs and start-ups.
Since start-up businesses are so ignored by most funding options and banks, we can make a significant difference in the lives of these entrepreneurs. These are the best options for your start-up to get funding. To see how much you can apply for click here to start the free no obligation pre-approval process.
Also, if you know companies trying to get funding, you can become an Account Executive Partner. For every client that you refer to us, and they receive funding, you will also receive a strong commission.
Also, we love doing weekly shout-outs to our successful clients. This week’s shout-out is to Tara. We have her testimonial here. At the time she needed funding, she was starting a new salon. She was talking to a few different lenders who were going to charge her huge upfront fees. We were able to get her a lot of funding which resulted in jump-starting her business. She’s now running a beautiful, high-end salon in Colorado and she wouldn’t have been able to get her salon to that point without the funding that she received.
This is really why we love doing what we do. We love getting start-ups the funding they need to take them to the next level.
Finally, I’ll leave you today with a quote from Tony Robbins, “Successful people see problems as temporary, unsuccessful people see problems as huge obstacles that they can’t overcome”
Always be mindful of problems but focused on the solutions. Have a great and prosperous day!