Here at LoanPig, we understand and appreciate that as a business owner, or as a budding entrepreneur with a stellar idea, it can be difficult to get the funding you need to sustain your business or to get your start-up off the ground. Not only can it be difficult to get the funding it can even be a challenge knowing where to start or who to turn to! That is why we decided to write this blog so that you can simply learn a little bit more about your options as a new or existing business – when it comes to business funding knowledge is power!
Don’t Be Afraid To Ask Family/Friends
This is perhaps a slightly obvious start to this piece as it is becoming increasingly common now for close family or family friends to support your business in its infancy, or to offer some financial assistance during times of hardship (or during a downturn in your profits). Of course, a loan or funding from family or friends should not be a gift, offer to pay interest or a stake/share in your business. Depending on the amount offered or required you might want to get a contract drawn up. This is best suited (generally) for new businesses who need a quick cash injection so that they can prove that their business concept can turn over a profit. Just be careful, combining business with family can sometimes end badly so consider all of your options carefully.
The Bank Loan Is Still A Great Option
Bank loans are now almost the classic/traditional type of loan and have been used by businesses for a very long period of time. They have evolved quite a lot in a short space of time and now the bank loan itself can come in all shapes and sizes, it can be specific to an industry or generalised. We would always recommend that you do as much research as you feel is necessary to get yourself the best and most applicable type of bank loan, inclusive of the best and most applicable terms and conditions, interest rates etc. A bank loan is also a great option if you are on good terms with your bank, are able to make a great case for the loan (good pitch/good presentation) and/or have a good credit score. Bear in mind that the process for securing a bank loan or affiliate loan types can be laborious, and require you to do a lot of legwork/paperwork. It is generally worth it in the end however especially if you are able to get yourself a bank loan with excellent terms.
Funding From The Crowds
Crowdfunding has grown more and more popular in recent years and has given rise to many different website and platforms, which themselves have helped in birthing multiple (countless even) amazing products, businesses and ideas! The general public can be incredibly generous, and if you have a business idea or pitch that you think will get you a lot of attention, if it is particularly revolutionary for example, then it might be a good idea to crowdfund for the funds you need. Peer to peer lending or offering shares in your company are both options with crowdfunding. With this type of funding, the greater or more novel your idea the better, you will need to reach a large group of people, and to do this you need something exciting to show them. It can also take a very long time to get to your desired figure if you reach it at all, so perhaps consider a different avenue of funding if time is of the essence.
The Business Angels
Granted, this is not exactly a common nor a wholly accessible means of securing funding for everyone however it is an excellent method that can have fantastic results for you and for the future of your business. An angel investor is an individual or group of people who are able to provide you with the funding that you need for your business, and more often than not is provided to start up businesses or to people with an amazing idea who just need to capital to get it off the ground. You will have to give up a % of your business to secure angel investment, but it could very well be worth it as the angel investor can add funds to your idea but can also add their knowledge and know-how, contacts, and experience.
Short Term And Payday Loans
Short term or payday loans can be an excellent option for your business if you want to quickly improve your working capital, significant boost your cash flow or if you want to give a specific project or business idea (within the larger scope of your business) the finance injection that it needs! Here at LoanPig, we are experts in the short term and payday loan industry, and have been providing our loan products to happy customers for years and years. If you need to also bridge a gap or plug a shortfall in your earning then a loan from us could be the perfect option. We offer competitive interest rates and terms alongside flexible loan amounts and repayment periods. We are also a broker, so if for whatever reason your loan application is not accepted we can connect you to a series of different U.K based lenders who will in all likelihood be able to assist you.
Furthermore, we are fully FCA authorised and adhere to ethical practices. To get your application for a short term or a payday loan started you can find our application form here.
How LoanPig Can Help
We have helped countless individuals as well as businesses who need a quick injection of cash. Our application process is simple and streamlined and we only ask for the information that we need in order to process your application. With a high acceptance rate, we are sure that we are able to help you out when you need it the most. To get in touch, please email us directly at info@loanpig.co.uk.