Let’s Talk Money: How to Fund Your Small Business

In other words…  learn your different financial options to fund your small business!

Finance is a difficult topic for many people to discuss. Money is beneficial when you have it but challenging when you don’t. When it comes to starting a business, you need money to push it off the ground. Some will need more than others depending on the business type. 

There are many ways to fund small businesses, but small business loans can be tricky. Let’s discuss some different ways that could help fund your new business.

Bootstrapping 

Bootstrapping your small business means that you are starting from scratch with little to no cash investment. You are building from the ground up by using your personal savings, alone. This may sound risky and for some this may not be an option at all. The main benefit is that it keeps you out of debt. You only pay for what you can in that moment. However, the success of your business might move at a very slow rate depending on how much money you’re able to put into it. 

Crowdfunding

This is an option that involves raising small amounts of money from large groups of people. There are plenty of crowdfunding sites such as Kickstarter or GoFundMe that can easily help you with this method. 

In order to receive a business startup loan through crowdfunding, you will need to share a business plan {Check out our previous blog on creating a business plan here!}, objectives, and sometimes further details when asking for donations.

Small Business Grants

This type of grant is a small amount of money that will contribute to the goals of federal, state, or nonprofit organizations. If your service or product benefits other groups, then this could be a great option to fund your small business. Unlike a loan, you don’t have to pay a grant back. Unfortunately, the government doesn’t usually give small businesses grants to start or expand businesses. It will be easier to search for state or local organizations. You can also apply for federal grants once your business is up and running. Check out this resource for grant searching.

Small Business Association (SBA) Loans

SBA is known for their loan programs specifically for new or underserved businesses — specifically small businesses and startups! They offer four types of loans — Lender Match, 7(a) Loans, 504 LoansMicroloans. Some of these loans can be difficult to apply for since they require you to have at least a 680 credit score and offer collateral. 

The benefit of these loan programs is that they have low interest rates and long repayment plans. This makes your loan payments significantly lower than typical loans. Startups are generally required to place a 20-30 percent down payment on an SBA loan, making them more suited to partially self-financed startups.

Business Lines of Credit

A business line of credit is similar to a credit card. You can borrow up to a certain amount and then pay interest only on the portion of money that you borrow. This provides more flexibility to fund small businesses than a regular loan. You simply borrow and repay funds as you go. Just be sure not to exceed your credit limit or miss a monthly payment.

Pro-Tip: You can borrow up to a certain amount and then pay interest only on the portion of money that you borrow. This provides more flexibility to fund small businesses than a regular loan. You simply borrow and repay funds as you go. Just be sure not to exceed your credit limit or miss a monthly payment.

If you’re still not sure which direction to go or you know this isn’t your area of expertise, LegalZing is here to help! We’d love to answer any of your questions and help you navigate the best options available to fund your small business. 

Don’t keep your dreams waiting.

Monthly Coffee Subscription

One of our first clients we ever partnered with is Evangelist Roasting Co. We value long time commitments, helping small businesses grow, and a good cup of coffee. This is simply just our way to give you a little something extra to fuel your fire!

Registered Agent Service

A registered agent is an individual or entity that you choose to receive service of process notices, government correspondence, and compliance-related documents on behalf of the LLC. A Registered Agent is required for any entity formation.

Preferred Member Discount

As a LegalZing member, you can secure up to a 25% discount on many of our start, grow and manage services for your business.

Access to LegalZing Vault

Being a LegalZing Member gives you access to our guides, networks, and partnerships. This means we can offer you exclusive business resources, and we can even quickly connect you with lawyers, insurance agents, realtors, and other industry-specific consultants focused on helping you succeed in your business ventures. Having access to the LegalZing Vault also provides specific discounts and priority support to LegalZing members.

Flat Fee Services

Save money by paying flat rates for certain legal services that could cost more by paying hourly rates.

Letters or Phone Calls

One of our partnering attorneys can provide further help with business legal matters by sending letters or making phone calls on behalf of your business for in-state business legal matters, each on a unique business matter, with 1 follow-up communication if a response is received from a third party. Receive any combination of 20 letters or phone calls annually on separate business legal matters (limit of 5 per month). Additional communications may be obtained for a flat fee. Collection Letters and Designated Consultations are not covered under this benefit.

Collection Letters

Late paying clients are an unavoidable part of business. Collection letters from one of our partnering attorneys could help recoup payment. Your provider law firm will draft up to 15 collection letters each month. Additional letters are available for a flat fee.

Document & Contract Review

Business legal documents can be complex and confusing. Let your provider law firm help. Submit up to 20 business legal documents per year, up to 15 pages per document, for legal review (limit of 5 documents per month). Additional reviews are available for a flat fee at member pricing. *Doesn’t include documents that are related to administrative proceedings and lawsuits.

Designated Legal Consultations

Have a specific question? Receive up to five designated 30-minute telephone consultations on separate matters each year. One of our partnering attorneys will answer questions about legal matters such as tax issues, securities, intellectual property, immigration and more.

Business Advice

Call or email your LegalZing rep for quick consultations, advice or have them research a question on business matters related to your business including but not limited to: hiring/firing, small claims, customer complaints, vendor issues, city compliance, landlord/tenant disputes, verbal contracts, customer complaints, incorporation, or joint ventures.

Preferred Member Discount

As a LegalZing member, you can secure up to a 25% discount on many of our start, grow and manage services for your business.

Flat Fee Services

Save money by paying flat rates for certain legal services that could cost more by paying hourly rates.

Collection Letters

Late paying clients are an unavoidable part of business. Collection letters from One of our partnering attorneys could help recoup payment. Your provider law firm will draft up to 10 collection letters each month. Additional letters are available for a flat fee.

Document & Contract Review

Business legal documents can be complex and confusing. Let one of our partnering attorneys help. Submit up to 10 business legal documents per year, up to 15 pages per document, for legal review (limit of 3 documents per month). Additional reviews are available for a flat fee at member pricing. *Doesn’t include documents that are related to administrative proceedings and lawsuits.

Designated Legal Consultations

Have a specific question? Receive up to three designated 30-minute telephone consultations on separate matters each year with one of our partnering attorneys. One of our partnering attorneys will answer questions about small business legal matters.

Business Advice

Call or email your LegalZing rep for quick consultations, advice or have them research a question on business matters related to your business including but not limited to: hiring/firing, small claims, customer complaints, vendor issues, city compliance, landlord/tenant disputes, verbal contracts, customer complaints, incorporation, or joint ventures.

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