How To Raise Money In A Hurry For Business Purposes - TechGeek365

How To Raise Money In A Hurry For Business Purposes

how to raise money for your business

Just like people, businesses can sometimes end up in cash-strapped situations. And the typical pathways to obtaining business loans take a lot of time. Therefore, a company’s ability to raise emergency capital in a short period of time is highly limited. Nevertheless, that doesn’t mean it’s impossible. Here are several suggestions for raising emergency capital for business-related needs as quickly as possible:

Ask Colleagues, Friends Or Family

The easiest and the least expensive way to raise capital in a jiffy is to simply ask for the required amount from friends, family or colleagues.

A friendly loan is the least risky way to acquire debt. The lender may not even ask for an interest. A friendly business colleague could be willing to lend the money on a smaller interest rate than what is usually available commercially. This method, of course, would require calling a lot of people. It’s also not very reliable because friends and family may not readily have the amount of money you need. Regardless, it’s well worth trying when a small business needs cash as soon as possible.

Consider A Payday Emergency Loan

Payday loans are a popular method for obtaining small amounts of cash in a hurry. They are typically available to consumers, but businesses or business owners can also take this type of loan into consideration. Payday loans have both major advantages and disadvantages. On the plus side, business owners don’t have to offer any collateral in return for cash. Cash can be obtained quickly as well. It’s strongly advised to research the lender before borrowing. When choosing this option, always try to get payday loans from vetted websites such as ElcLoans. The approval process for most payday loans is conducted online and won’t take more than several hours. After approval, borrowers can expect to secure cash within a business day or two. Remember – payday loans are quick and easy, but can also be very expensive. You should be very careful not to fall for payday loan scams where interest rates can go very high.

Use A Credit Card

Most people these days have credit cards. If a small business requires cash in a hurry, don’t hesitate to use credit card cash advances to get the amount that’s needed. One can withdraw cash using an ATM, but the best way is to go to the bank directly to withdraw a larger amount. The money withdrawn will come at the same interest rate as usual. The disadvantage here is the amount available will be limited depending on the credit limit on the card.

Get A Merchant Cash Advance

A merchant cash advance is a payment solution intended especially for business-people. Merchants can obtain a cash advance on future credit card sales. This type of loan is usually offered for businesses with high volumes of credit card sales. If the business makes plenty of online sales where credit card payments are accepted, then obtaining a merchant cash advance should be relatively easy. Merchant cash advances are also known as “working capital loan” or “lines of credit”. The borrower has to pay an interest or a fee on the advance. These loans were very expensive in the past, but nowadays, merchant cash advances are offered in hybrid lending packages that most businesses can afford. A merchant cash advance is very easy to obtain and can be done in a matter of minutes or hours.

Crowdfund

Crowdfunding is emerging as a legitimate way to raise capital for doing business. It typically takes time, but it’s still a viable method to raise capital within a week or two. The obvious downside is that a company could never be certain how much a crowdfunding campaign may raise on any given day. But for a business that needs cash in less than a month, crowdfunding is a great option with little financial risk.

Bottom Line

  • Use one or two of the above methods to find the money required.
  • Keep in mind, however, that borrowing money is risky no matter what.
  • Borrow responsibly, and make sure to pay back what you owe.

Mohammad seeks to shed light on the corporate and financial side of tech firms while analysing the sector as a whole.

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