What resources exist to finance my business?
There are various resources available through programs and lenders to raise startup capital or obtain a loan.
Non-profit, Community Lenders, and Community Development Finance Institutions (CDFIs)
• Often, these have socially-driven missions to support certain populations and may have fewer restrictions than traditional banks when making lending decisions.
• Banks are a traditional way to finance a business but have the strictest requirements for providing loans.
• You may be required to provide an alternate source of income and/or impressive credit score, or be able to provide significant collateral.
• Bank loans require that you have a business plan, which includes projected cash flows and other financial documents.
• Your investors may be people you know, such as friends, relatives, or colleagues.
• Investment can also come from venture capital—angel investors or venture capital firms that want to invest in your business.
• Crowdfunding, also known as peer-to-peer lending or investing, is an alternative funding model often through via Internet platforms.
• Crowdfunding can also raise awareness of your company or brand.