If you’re looking to start a new venture, it can be difficult to find the funding you need.
Unfortunately, most business ventures will require a little more capital than what may be sitting in your piggy bank at home. Here a few options that can help alleviate the crunch for cash.
Kabbage and OnDeck are online lending platforms and have a tremendous advantage in the speed and simplicity with which they can grant loans. There’s no suit and tie required to apply and no time needs to be taken from your day. A simple online application is all you need and in most cases will take less than an hour. Approval can follow in a matter of days as opposed to traditional banks which may take many times longer to process.
If your business is already running, but is short on cash due to outstanding invoices, consider invoice advance companies like Fundbox. They offer advance payments for outstanding invoices that can be used to greatly reduce the stress due to limited amounts of cash in a startup. In exchange for these services, you pay ‘clearing fees’ which are calculated by the health of your company and the type of invoice you’re seeking to clear. Some companies, such as Fundbox, will cover costs by having specific fees to be paid upfront, before any terms are agreed upon.
Some businesses will find success through the relatively new medium of crowdfunding. Crowdfunding allows a large group of people to individually contribute small amounts of money to a cause or company, normally through the internet.
Regardless of what method you choose to bring funding into your business, most lenders will want to see some sort of financial statement, such as a balance sheet or profit and loss statements. These may be historical or projected.
Also, any increased cash flow into your business will have specific tax implications that must be addressed.
If you’re looking at funding options and would like some advice or assistance in navigating the specific tax implications you might face, contact our office in Joplin, MO today. We’ll look forward to hearing from you.