Are there other sources of financing for start-up businesses?

Yes. First consider your personal resources. Ask your bank about a personal loan and remember that a home equity loan is still the cheapest and fastest loan to obtain. Next, approach family and friends – those who know you best and who want to see you succeed. Show them the opportunity of investing in your business. Let them have an equity stake in your business, or if they prefer to lend you the money, write up an informal contract and pay back the loan as if you were working with a bank.

Factoring companies provide money lent upon receivables. If you have a product or service that you have already provided and billed for, but you do not expect payment for several weeks, a factoring company will quickly provide you up to 80 percent of the total invoice. This cash helps to cover the cash flow of the company until you get paid.


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