Financing Options in a Down Economy

Filed in archive financing on March 17, 2010

© ★Debs★


While the economy continues to trudge forward, the options for funding your home business idea may look slim. However, end during uncertain times, opportunities still exist. If you've made up your mind to start your home business despite the recession, I applaud you! Now all your need is the capital to really make an impact. Here are a few financing ideas to make your transition easier:

• Traditional Bank Loans: Surprisingly, they still exist. While many banks are loathe to part with money, some still do. If you have a personal relationship with your banker, it will be easier to meet and discuss your options.

• Government Loans: Government loans require miles of paperwork and a long process, however they offer great interest rates if you're willing to put in the work to get one. Check out the Small Business Administration website for more details.

• Loans from people you know: Asking your family and friends to invest in your company might seem difficult, but it is often the best way to get started.

• Credit Cards: Always a risky way to find funding, but an easy one with the current economic situation.

• Venture Capitalists (or Angels): Even a home business could have the potential to catch the eye of a VC. If you want to try this route be sure to have a strong business plan and be willing to give up some of the control of your company.

• Creative Funding: Now is the best time to experiment with creative funding. Can your business work as a non-profit and take donations? Can you ask for money online or through paypal. Can you use social media or knick-knack merchandizing to raise the money you need?

Don't despair, banks and individuals still want to invest in great businesses. If you have a great idea, don't give up on it, just spend your time making it attractive enough to receive the funding you need.