If you run a small business or you are an entrepreneur trying to make your way, you will know how difficult it can be to obtain funding. In an ideal world you would be able to get your business up and running, make a few sales and then rely on income to fund development but this is often not the case. In many businesses, industries and sectors, there is a need for a lot of money to be put into a business or company before they can even think about making a product or offering a service, let alone making a profit.
This can limit your opportunity to develop and prosper as a business, so you really want to put some thought into how you can generate funding or obtain the finance you need to move forward. You will find that traditional lenders are no longer interested in supporting start-up ventures or new businesses.
Yes, banks have lost money and they are looking to minimise the level of risk that they take but in doing so, they are preventing many businesses from getting started, and this means that they are slowing down the economy. There is an economic and political argument for banks and traditional lenders to provide a greater level of funding but of course, there are other arguments against funding being provided in this manner.
Look for what Funding is Available
Depending on where you stay, what sector you are looking to operate in or even what personal characteristics you have, you may find that funding is available through a grant. You should research online what sort of funding is available to you, because there may be a chance to get money in this way. You should also look to ask family members and close friends to see if they would be keen to support your business endeavours.
This is something that many people would prefer to avoid doing but if you need to get money and you believe in your business enough, this is an option that is worth pursuing. It may even be that the motivation to ensure your family members and friends are paid back could offer even greater encouragement to you while you work.
However, many people find that they need to obtain a serious level of funding and they need to do so quickly. In this regard, you may find that a guarantor loan is exactly what you are looking for when it comes to boosting your business. A guarantor loan for business purposes is processed and set-up in the exact same manner as an individual applying for a guarantor loan, so you may want to read into this process.
If you have someone who is willing to act as a guarantor, your business can obtain the funding that it needs to move forward. Being able to obtain a loan up to £10,000 or £12,000 which is paid back over a number of years is the sort of funding that can make the difference between success and failure when it comes to running a business.
Do you need Finance to Obtain a Vehicle for your Business?
If you need to buy in equipment to provide the work that you wish to provide or you need to obtain funding to buy a van or vehicle, a guarantor is the sort of loan that provides you with the finance you need when you need it.
The affordable rate of APR, available due to the presence of the guarantor, makes this a suitable option compared to other loan or finance options. Obtaining a vehicle for your business is often one of the first steps for a fledgling company, so knowing that that you can obtain the financial support you need will be of great comfort and benefit to emerging businesses.
In order to provide confidence to your guarantor, you should create a business plan and ensure that they are happy with what you lay out. It can be good to talk through your ideas to other people, but you’ll find that when money or even reputations are on the line, people will take a greater level of interest in a project. Having a guarantor on hand means that you have someone who is emotionally invested in your business and who will be rooting for your success. Sometimes this is a crucial aspect for any firm as they look to start off what they hope to be a brilliant and blooming business.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.