Finding Money 4 Your Biz!

February 6, 2019 | Filed under: Business, Success

I am going to do a quick and dirty reference for more money or capital. Then go into more detail for each (later). As well as, talk about business credit and grants. And remember the best time to build personal and business credit is when you do not need it. 

1. Peer to peer. Peer to peer loans are un secured loans. That any one with a 650 or greater a job income or self employment income. 

www.prosper.com (W2)

www.lendingclub.com (Self employed, 1099)

www.avant.com

www.upstart.com (college degree, starting out). 

2. Credit Cards. You can build your credit cards up to have excess available credit. One of the best ways to do this is to use them in the business. Pay for as much as you can with credit. Max them out. and pay them off. I had hundreds thousand on credit cards (14 of them). And a million a month access with AMEX (or I should say the business had access on amex). 

3. Build Business credit. Ensure you build a profile with Dunn and Brad Street. http://www.dnb.com. D & B are the credit agency for business credit. If you build a profile, over time, you can build separate business credit away from your personal credit. More on this later. 

4. Sell Receivables or Payment plans. Your accounts receivable can be “factored”. Give you cash today, for what other owe you. Certainly if you sell a service over time you can sell that 1 or 2 year contract for cash today. 

5. Pawn Assets. You can look at your personal assets and pawn, them or business assets too. Taking loans against the asset (that is free and clear). 

6. Life Insurance. If you have whole life or universal life insurance. There is a cash value. You can borrow against that value. 

7. 401k. There is a provision in many retirement account to borrow money. often 50% unto 50k. You have to pay yourself an interest rate too. So, the money does make money. 

8. Friendly Loans. Loans from family and friends. You can give them a great interest rate. 8-15%. Much better than the stock market. And even secure the loans by a piece of the business if needed. 

9. Go Public (in some format). There are several ways you can borrow money or have folks invest money in your company, for a piece of the deal. I have experience with this, took one of my companies public in 1996. Just make sure you keep 51 percent of the stock. 

10. Crowd Funding. New but effective. Use one of the crow funding platforms, to get your idea or business off the ground. www.gofundme.com

11. Borrow again home. Home equity line of credit (HELOCs) is way to access your home’s value. 

12. Bank Loans. For the business or personal. Obviously, you need to qualify for them with personal and business asset and credit. 

13. SBA Loans. Small Business Administration has some great loans for business. In particular for asset acquisition (equipment, buildings). www.sba.gov For example the 7(a) Loan Program can fund a small businesses. It can be used to start a new business or expand existing business. They range from a few thousand to $5 million. There are also, companies they help access these loans. 

14. Angel investors and venture capital firms. This can be a real head trip. Trying to figure out what your companies worth, how much you need, and how much they want in return. (kind of like the Shark Tank). A great business plan, and pitch are the key. You give up part of the company for cash or and credit. You might check out the SBA’s Small Business Investment Company Program.

15. Economic development programs. Every city or state has an ED program. Often giving companies, tax breaks, loans, grants or special considerations. Better if you are a minority by the way. For example women, and minority owned companies might qualify for a special loan. 

16. Veteran Programs. The Department of Veterans Affairs has help for Veterans. If you served, first god bless you, second take advantage of government programs for you. 

17 Corporate programs. Several large business, have start up support for small business. In particular if they relate to their business environment. I have a partial list I will provide at a later date, with explanations. 

18 Grants. Go to www.Grants.gov for information on 1,000’s federal grant programs.

19 Women and SBA. Female entrepreneurs should connect the SBA’s Women’s Business Center. Many around the nation. Many these centers provide state, local and private grant information. 

20. Rollovers As Business Startups (ROBS). Just learned about these last year, from a long term, Self Directed IRA associate. Take your 401(k), Individual Retirement Account or other retirement funds and fund a business without incurring taxes. The account rolls over into a new retirement fund that, basically, owns shares in your business. ROB’s are complicated, you need to do right. Do not DIY (do it yourself). All kinds of taxes and penalties if you mess up. 

21. Manage Expenses: There are few things, you can do to cut business expenses, and therefore free up some cash. You might consider some of the following: 

-Annual payment and discounts. Many services offer, a discount, if you pay annually. Even something as simple as paying one year of hosting or internet web site cost. A word press site at Go Daddy is a month $9.99 if you pay monthly, or $ 6.79 a month if you buy 3 years today. Many business services give an annual discount. If not, ask them. Shave 10-30 percent off costs. You might try TRIM too. 

-Coupons. I am not a cheap guy. Use to think coupon cutting was crazy. But my wife made me a believer. Saving 10 percent of food is one thing. But saving 25% on printing bill is awesome. When I do a seminar, my print bill from Kinkos/Fedex is often $1-2000 a seminar (handouts, forms, or workbooks). You can find a 25 to 30 percent coupon code on line. Just google. That is a savings of $ 250-600 per event. If I do 40 events a year. HUGE! Try www.honey.com Automatically finds discount, but go on line to. Look for discounts. Get staff to look for discounts. In one of my seminar companies, we use to offer a 10 per cent finders fee, for shaving meeting expenses. Not dropping them, but shaving them. A road manager saved 500 on meeting space. He or she got $50 bonus. Sometimes all they had to do was complain about something or even just ask. 

-Credit Cards. Using credit cards, can build business credit (as well as personal), it can delay payments buying you 30 odd days (grace period), but it can also, give you some perks. Miles, or CASH BACK. If I spend a few hundred thousand a year, and get 2% back, that can help the Biz. I know one guy that actually offered, health care to employees, based on getting cash back. It helped fund their health plan. 

-Credit from Vendors. A form of delayed payment, but can help with cash flow. After working with a vendor for a period of time, ask for 30, 60 or 90 days net. Make your money, then pay them. Gives you cash today today. In the UK, we use to have to pay for all our marketing upfront to an agency. Yet I know, many of their expenses, were on 30 day or 60 day net. We asked for the same. Therefore, indirectly using their good credit. 

-Barter for Services. At one point in Orlando, I belonged to a business barter exchange. I traded sales training, for advertising. It was a great deal. A few days of my time, for advertising money. Either join a group or just propose, a deal. One of my best deals ever, was trading TONY ROBBINS tickets (A firewalk event), for FREE Ads in a Toronto newspaper. The paper gave me face value of the tickets $295 each, they took dozens by the way). I got FREE adverting. 

– Cut your TAX bill. Minimizing your tax bill is great to improve your bottom line. Maximizing of all your deductions. Many entrepreneurs fail to expense all items. Many miss: Mileage with a car, family members that help out, vacations that could be business trips, meals and entertainment, they don’t realize could be tax deductible. It is a good idea, to pick up Publication 334 (and READ it). 

Trust these help you get some cash, save some cash and give you a head start on playing the capital business. I will post more about each specific area. In particular business credit, and grants and loans at a later date. If you enjoyed these and want more. Make sure you say OH YA in the comments section. Just so I know you benefited. 🙂

PS: This was a quick & dirty. Imagine what else I know, on Money that you want to learn?

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