• Factoring means that you sell your accounts receivable to a third party i.e. a factor, to get immediate cash. It is an expensive option, so it is for growing businesses. If you have a stalling business, do not choose this alternative.
• You may borrow from your retirement accounts. Start with a 60 day interest free loan. Do not select this option if your business is risky.
• Find grants, local, state or federal government programs to help you start your small business. Consider that government grants are restricted to specific fields and causes, i.e. scientific or medical research or conservation efforts.
• You have more chance to succeed if you start a crowdfunding campaign, provided you are familiar with digital marketing, social media sites, and you know how to reach out to potential donors. Websites like Indiegogo or Kickstarter offer you a chance to find an audience. Always try to find a cause or idea that are important to others and people are willing to support. Emphasize how your enterprise will give back to a community or a particular social group. You may convince your future donors that you will manufacture products or offer services that will enhance their lives. For example, you offer that you produce personal safety devices, and your supporters can order some so that they feel safer. In some crowdfunding sites, you are supposed to offer rewards, samples, or gifts to your donors.
• Peer to peer lending means that you get loans from people whom you do not know; you can find them through the Internet. Prosper and Lending Club are online credit marketplaces. However, interest rates might be extremely high.
• Bartering is another alternative to fund your business. Instead of paying cash, exchange products or services. It saves money for your enterprise, and it may get you new customers. You can find another business that is willing to barter, or you can turn to a barter exchange, such as IMS Barter. This method has one disadvantage: you will not receive money for it.
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