Owners of start-up businesses often complain that it’s extremely hard to get financing. That’s partially true, even in the modern world of crowdfunded everything, alternative lending institutions and other non-traditional avenues for start-up funds. Some owners find it nearly impossible to get that first bit of seed money that can make all the difference. The vast majority of successful businesses went through several “mission statement” changes in their early years. A lot of that has to do with owners who change direction as they meet funding obstacles along the way. Lenders want to know their money is safe and will produce a return. As long as an owner can demonstrate the credibility of a sound, workable business idea, funding will eventually be within reach.


ALSO READ: Run away a 1,000 MILES if a forex broker promises these FIVE THINGS to you


Banking industry professionals often cite four things that owners of new businesses should consider when funds are lacking and a traditional loan is out of the question. Here are four ways for owners of micro-start-ups to get funding, or at least make themselves more attractive to banks and other lending institutions.

Seek Personal Funding Sources

It’s almost too obvious, but many owners of start-ups overlook personal funding resources. If new owners are willing to “go all out” for a business idea, then it only makes sense that they’ll sell some of their personal assets (second car, boat, motor home, coin collection, and art work, for example) to bring in much-needed capital. When approaching a traditional lender, owners can up their chances of getting loans if they can show that they’ve exhausted every personal funding avenue available to them. In addition to selling off excess assets, owners can ask friends and relatives for short-term loans or can use their own credit cards for business expenses like rent, supplies and services.

Have a Relevant, Believable Business Model

It’s nearly impossible to acquire funding for businesses that are not, at least on paper, good concepts. Imagine how a lender would view a loan applicant with a company name like “New York City Crop Dusting,” or “Alaska Air Conditioning Repair.” Those might sound extreme, but lenders do look for sound ideas that are geographically appropriate. Companies that might be more likely to get a second look from lenders would include names like “Minnesota Chimney-Cleaning Company,” and “San Antonio Lawn Care Service.” The basic business idea needs to be not only viable by logical.

Have a Detailed Business Plan

*** SPECIAL ALERT -- May 10, 2020 -- Motley Fool Stock Picks On FIRE! ****

The recent Motley Fool stocks picks, even with this COVID crisis, are STILL performing well and beating the SP500! Here are some of their most recent picks and their performance:
  • Shopify (SHOP) – April 2, 2020 pick and it is already up 90%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 16%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 17%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 77% compared to the SP500 -12% so it is ahead of the market by 89%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 4%
  • Netflix (NFLX) picked November 21, 2019 and it is up 37%
  • Trade Desk (TTD) picked November 11, 2019 and up 50%
  • Zoom Video originally picked Oct 3 and it is up 87%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 20%
  • Zoom was also picked October 3, 2019 and it is up 95% since then.
The average stock they've recommended is up a life-changing 346% - more than 4X the return of the S&P 500 ! Now, no one can guarantee that every pick in Stock Advisor will have the same mind-blowing returns as Netflix and Disney. But you sure don't want to risk missing out.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

Hurry! Order now so you will get their next stock pick! Here is the expected schedule of release dates for their stock picks...:

  • June 4 - Tom's New Recommendation
  • June 11 - Tom's New Best Buys Now
  • June 18 - David's New Recommendation
  • June 25 - David New Best Buys Now

CLICK HERE to get The Motley Fool's Stock Picks for just $99 per Year! 

This is where so many start-ups get stopped cold. It’s not enough to have a few notes about the “goals of the company.” Owners need to work up a detailed business plan that follows a specific format and includes prospective financial statements, marketing analyses, and more. For owners who can afford it, it’s wise to hire a professional to create a solid business plan.

Get a Few Customers on the Books

Most lenders say that it is a huge plus for prospective borrowers to already have at least one customer on the books before applying for a loan. Those first customers lend credibility to the business concept and demonstrate to potential lenders that there really is a market for the idea.


INVESTING TIP #27-- HOW TO GET FREE STOCK!

Get Up To $1,000 in Free Stock with Robinhood--the Commission-Free Brokerage!

Open a new account and receive one free stock valued at up to $500! Then, once your account is open, get more free stocks (value from $5 to $500) for each friend, family, person you refer! USE THIS LINK to get started with Robinhood!

LEAVE A REPLY