How to Find Business Investors and Funding When Banks Say “No”

There’s never been a buzzier time for new start-up companies around the country. Rapid growth in technology has fostered an environment where new and exciting ideas can easily become reality.

Maybe you yourself believe you have the next great idea. You’ll have to face certain challenges in bringing it to the world, but prime among them will be finding the money to get everything off the ground. You’ll need funds to do just about everything for your new business, but where can you find the cash if your bank turns you away? 

Read on, and we’ll walk you through a few creative ideas on how to get business investors to help start your business along. 

Crowdfunding 

Speaking of new technology? The internet has created a world of new fundraising opportunities for businesses, start-ups, and creatives. 

Prime among these exciting new options is crowdfunding, a practice made popular by websites like Kickstarter and Indiegogo. These websites allow you to pitch your new business to the online community at large, and those who would like to see your idea become a reality can pitch in.

You can offer incentives to help encourage donations and you can set your finding goal as high as you’d like. If you have a strong social network online and feel people might be supportive, crowd funding is one of the best possible fundraising routes. 

Small Business Administration Loans 

Even if banks turn away your request for a loan, it doesn’t have to mean that you’re down and out. The U.S. government itself has a vested interest in supporting the growth of small businesses. 

The Small Business Administration is an official branch of the government that offers different loan options to entrepreneurs. While these loans might be easier to obtain than those from a bank, there are still a number of qualifications required. If you don’t qualify, you can always look into unsecured loans for small businesses.

Finding Angel Investors

When you crowdfund, you might get donations as small as $5 from different individuals. That means while you won’t owe anyone a return on their investment, you’ll need a pool of possibly thousands of investors to make your dream a reality.

Many people prefer to get their money from a smaller and more reliable few sources. In many cases, they may find and connect with wealthy individuals looking to fund the next big idea. 

These individuals are known as angel investors, probably because they can literally sweep in from the heavens and change your life. Many of the biggest companies in the world today were initially funded by angel investors. 

When an angel investor puts money into your business (usually in large amounts!) they do so in return for some form of equity or share. That means if your business makes profits, they’ll take a big cut for themselves. 

Attracting Business Investors 

Starting a new business can be rewarding and challenging in equal measure. The above methods are just a few ways you can attract business investors to your company and help get the ball rolling on your new future. 

Need more business advice? Check out our blog for more info. 

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