How to finance your business in an instant! (sort-of)

So you just got your million dollar idea, you’ve drafted your business plans and satisfied the necessary prerequisites to start up your business. As you check your bank balance, you realize that you are short in funds. Confident in your business idea, you want to strike the iron while its still hot, so you end up asking yourself, “how can I finance my business in an instant?”

There are many ways to go about it, and it does not involve joining a get-rich-quick scheme or an MLM that would have you losing friends in an instant instead. Let’s look at some of those methods as below:

Get Government Grants

When possible you could always look to your government for help! Most governments’ like in Malaysia offer plenty of tailored grants and financial aids to help small and medium-sized (SME) businesses grow. These include the NCER Grant, Digital Content Grant and many others.

If you’re based in NZ, Work and Income offers a business start-up grant for qualifying individuals. Callaghan innovations provides a deep-tech incubator programme for tech start-ups.

These grants vary in their requirements and are tailored specifically to a businesses needs. This ensures that a wide range of business owners are given the chance of obtaining a government grant. A tip on how to better secure a government grant is preparing a strong application with a clear business plan.

Hone in on a Home Equity Loan

What is a home equity loan? It basically means that homeowners can borrow against the equity in their homes. It is a type of consumer debt that is based on the difference between the current market value of the property and how much mortgage balance is due.

Home Equity loans will have the property serve as collateral for the lenders. Failure to repay could result in the property being lost and taken away. That is why, when considering a home equity loan, you will need to asses the loan-to-value ratio, interest rates, and repayment terms.

Securing your business cash flow to cover loan payments and consulting a financial advisor before leveraging your home equity can help reduce risks and explore alternative financing options.

Find Business Partners or Equity Investors

If sharing ownership of the business is not a problem for you, consider finding business partners or equity investors. This can raise capital quickly through additional funding in exchange for a percentage of ownership in the business. Additionally, you may also gain industry expertise and valuable connections along the way.

When searching for equity investors, prepare a compelling pitch and solid business plan that promises a return on investment. You will need to carefully evaluate potential partners and align them with your long-term business goals and vision.

In short, there exists many ways on which you can finance your business in an instant. They require an understanding of your business and confidence to promise a good return on investment. Whichever method you decide, choose the option that best aligns with your business’s current financial health.