With every great idea, comes the need to develop that idea with the most important resource any business owner can have: Capital. Money is a driving force behind new start-ups becoming successful. Some people have the ability to use their own money to get things going, but most people need help to get things going. Having the ability to have money, can allow you to use more resources in order to turn that great idea into a reality.
Every great business had help in the beginning and used various resources to get started. Some had options where they did it themselves, which we will cover. While others, seek help from the outside in order to achieve the financial success needed in running a start-up into a successful business plan.
With that being said, let’s look at a couple of different options. We take a dive into different options from Debt relate financing, to personal financing and everything in between. When we are finished, all the tools needed to help get your start-up off the ground will be laid out right in front of you.
A lot of new business owners use debt financing. This is when the business owner goes to either a bank or an online debt lender in order to get a loan. These loans are for a set amount of years and require the borrower (the business owner) to pay interest back to the creditor (in this case the bank or online lending company). These types of loans usually require some sort of financial history from the person or company borrowing the money. This can be a huge obstacle for the businesses to get, sometimes we have to get a little creative, thus making it easier for our entrepreneurs to get the funding they need to get started. What might happen, is banks would be a little more hesitant to go in on a new start-up, we would look to online lenders who have fewer government regulations in order to get these done.
This could be a good option and would provide a stable way to get income. As we begin to explore some alternative options, we can look at all of our potential choices and see what fits best.
When businesses are in their early phases, we’ve seen that getting a loan could prove to be difficult. A personal loan is something the business owner could do, where they are taking the financial aspects on their own personal credit. A personal loan is a loan that anyone can get, where the lending companies provide a few different options. One option is a cash-secured loan. This is where the company providing the money gives cash to the person applying for the loan. There would be interest charged, and we would usually see these rates fall well below credit cards, around 5.99-9.99 %. These loans are for a set number of months and can provide you with instant cash to get things going.
This does come with a few caveats since if something happens to the business you would still be on the hook for paying these loans back. Having the ability to get instant cash is something that cannot be overlooked, and can be crucial in securing the funds needed to see a great idea turn into a money maker.
Investors are a great way to get your great business idea started. Investor are people who view start-ups and great new ideas as ways to provide themselves long term income. These investors usually carry a lot of financial stability, and would allow the business owners to get instant income without having to go through all of the red tape of applying for a loan. When you apply for a loan, online lenders and banks alike would require a lot of financial history from you, which could prove to be a problem since most new start-ups don’t have any financial history at all. These investors usually would require a long-term commitment from the owner, and could be on the payroll for a long time. Investors like to protect their investment, and would also want to be able to provide information and advice during the start-up process. As a new business owner, this might not be the most ideal scenario provided. We will show all of our choices as we begin to dive into the possibilities.
Not all business owners have the option of using their own money to begin a project. When a new idea is born, the wheels really start to spin, and so can your head when you’re personally pumping money into a new idea. This method can provide you a little more opportunity to control how the money is being used, and what the time frame on new projects can be. There are a few downsides, as the possibility of running out of money is always on the table, and the financial losses could prove to be dire. There is also another choice, of asking friends and family to provide financing as well. This option could prove to be successful if done right, but there are cases where this could provide more problems than solutions. This leads us to Initial Lending Group (ILG) which provides all the options with the most to gain, and we’ll talk about them below.
Initial lending group provides customers with options that not many other lenders are providing. ILG provides business owners many different choices to their customers that we simply aren’t seeing. On the personal side, ILG is providing customers the option to lend up to $150,000! That is simply something we just don’t see too often and proves why they have separated themselves from the competition. When we think of a big picture lending opportunity for a business owner, having this as a choice could prove to be invaluable in getting your business going. With this option, your stresses could be alleviated rather quickly, and your focus could be on where it needs to be: making more money for your start-up
ILG provides new business owners start-up loans. This proves that ILG cares deeply about business owners, and wants to provide them with the option to get started. This is a tool that can attract many new business customers and will allow them to thrive in a new environment. ILG looks at the customers having a good credit history, and once that is in place, provides a true partnership with their customers. There are plenty of lenders that do not want to provide start-ups money, but ILG not only wants to but shows they have the team in place to handle it and help your business thrive. Having the ability to provide new customers with cash is why ILG shows time and time again why they are among the strongest leaders in the industry.
We’ve talked about a lot so far today, and we have dived into the many different route’s businesses have when they first get started. There can be a lot of hardships and tough times in the beginning, and what is clear is that the most sensible option would be to allow the professionals to provide the start-up money. There are plenty of risks associated with taking out loans from untrusted sources or using non-debt options such as family or investors. Those options come with great risk, as all these choices do.
The best things in life provide choices, and when we survey what choices are out there, we see that the great staff over at ILG provides the best insight to get your business on its feet, but also the most choices. Having the option, as we’ve covered already, to take personal loans out of up to $150,000 is something that we just don’t see in the market today. Banks won’t lend a personal loan even half that, and having the option to assist new business customers with their start-up ideas is what sets apart ILG from the rest. The choice is simple, we’ve given you the resources, now it’s time to make a choice for the future.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.