Capital is often the most critical factor in the success of a small business. Yet it is so often misunderstood as far as what options are available. Listed below are some good and not-so-good (but do not count them out) options.
- Friends and Family
If they are lending you money, consult the best ways for you to set that up. We are not financial or legal experts and will refrain from offering advice here.
- Credit cards
- Bank loans
- CDFI loans
- FinTech lenders
FinTech also offers various products such as lines of credit and factoring. Oftentimes, you can get the capital within a day or two. Just keep in mind the expense may put you in a hole you will struggle to get out of.
However, if you are looking to build something for the long term that is more focused on mission than profits, venture capital is something to avoid. That said, there are social investors who want their investments to make an impact. Jenny Kassan consults in this area and often speaks on this paradigm.
- Managing your cash flow
Capital is critical to the sustainment and growth of your business. There are options out there that are good, cheap, or fast. Take some time to determine what works best for you and your business in this moment and what sets you up for the best future possible.