So I am in the process of paying off my debt completely and my target is to do that this year. I’m paying only $250 monthly towards my debt now as I’m almost done paying it off. I have a little bit of emergency fund in my savings, and a little bit of extra income from my websites.
Now I am working on a new online project with Mike Dammann, owner of Firetown.com. Our biggest challenge right now is to raise money to fund the project for start-up. We have limited collateral, are only a start up business as opposed to an established one and do not have enough money to fund this project on our own. So we did a little research to learn how to raise capital.
I found 18 funding sources that we could look into. They are:
1. Startup Financing
2. Elease.com – Equipment Leasing
3. CDFI.org – Community Development Financial Institutions (CDFIs)
4. Microloans (mostly for poor entrepreneurs in poor countries)
5. Loans from commercial finance companies, a.k.a. Asset based loans
6. Bank-Term Loans, which is more suitable for established companies
7. Small Business Administration (SBA) – Guaranteed Loans from government funding
8. Private Loan Guarantees, which is appropriate for early stage companies that can be profitable in 1 year
9. 504 Loans, which is appropriate for real estate, facilities construction or expansion, or other fixed-asset needs.
10. FPRC.com – Royalty Financing, which is cash advance against your income from the future sales of your product
11. Government Grants or Federal Government Venture Capital -
12. Venture capital from individual investors, which are called Angel Capital or Angel Investors
13. Business Incubators which house several businesses under one roof
14. Loans within your 401(k) plan or the 401(k) financing
15. Direct Public Offerings, which is for established businesses that plan to go public
16. Reverse Merger, the taking over of a private company by a public company
17. Initial Public Offerings or IPO, which is selling the company’s equity through an investment banking firm
18. Institutional Venture Capital or IVP
We are now going through our options so we can finally start our project. If you are setting up your own business or expanding your existing business some of those options above may be appropriate for you.
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