Businesses usually struggle with cash flow early on and again when they’re pushing for growth. Some of the instances that trigger a need for extra funding are: your business might be taking on extra staff, or moving office or setting up in a new location. Another reason is you’re buying a business, maybe from a competitor. It seems whatever the status of your business, there’s always a need for extra funds for working capital and investment. As the saying goes: “if your business isn’t going forwards it may be going backwards”.
Looking for funds is lot easier now. Gone are the days when a business owner had one option available and that was to approach their bank. The appointment with the bank manager at the time was a big occasion requiring your best work attire and saying a pray or two. Thankfully today there are so many different funding options available for businesses and business owners, it’s most likely there are some you may not have heard of let alone considered. Crowdfunding is popular so you’ve probably heard of it even if you’ve not given it a go yet. But how about selling a life insurance policy? Yes, this is a bit more left-field but it’s a real funding option so read on.
Sell Your Life Insurance Policy
Life insurance is often taken out by business owners and investors as a prerequisite for securing large loans like a mortgage or a business loan. Over time the policy actually becomes an asset and when the need for it expires, rather than cancelling it, the policy can be sold. Yes you can sell your life insurance i.e. it’s converted into a life settlement and the monies invested elsewhere. Of course this option is not available for everyone, so other funding products are more suitable and prevalent. They include:
You may see this term and think you’re dealing with a math problem. In actuality, factoring is a great option if your business relies upon accounts or clients who take a long period of time to pay. You can essentially sell off these accounts to a company, who then gives you the money that they’re worth up front minus a percentage. The percentage might be worth it to you to get the cash up front.
Seek Out The Crowd
Crowdfunding has become more popular and more reputable as a source of income. If you can convince people of the need for what you’re doing with your business, you can have them invest the money you need through a third-party website.
Remember that there are many options for quick business funding, and you should explore the positives and negatives of them all before proceeding. Choosing correctly will give you the funding to invest in your business with assurance and confidence.
As well as these types there are many other funding options like: angel investment and raising venture capital. Plus another favourite with business owners is using their property to secure a Line of Credit. Whatever you choose to do and whichever option looks the most attractive, seek professional advice.