6 Ways to Secure Early Stage Financing

6 Ways to Secure Early Stage Financing

It all starts with a vision, a project, and a product. So do you have what it takes to pull it off? Designing the concept of your startup or its logo is all fun and games. Things tend to get serious when you draw up a business plan and decide where you will procure your initial investment from and how you will spend it. Just getting your company registered in the initial stages will cost you a few thousand dollars so where can you secure the finances from?

1.  Family and friends

Whether its emotional support or financial support, they have your back through thick and thin. They can spread the message of your company, and you will have the security to rely on them.

2.  Crowdfunding websites

These websites provide new startups with easier access to larger audiences. You not only communicate your idea to the masses but can also test the functionality and market potential of your product.

3.  Seed investors and angel investors

The seed investors are people who provide your startup with the necessary financial support and own a small percentage of shares in your company. Angel investors are often people who have sold their startups successfully many years ago and now look to support early ventures.

4. Private lenders

This perhaps is the most convenient way to fund your startup. Reputable private lenders provide efficient and prompt funding. Not only is there a minimum risk to both the business and founders, but this way you can also build your brand’s reputation in the market more quickly.

5. Bootstrapping

Bootstrapping is starting a business without the initial financial assistance. This is done by setting aside a small amount in the beginning and making use of the internal cash flows while cutting down on expenses. This solution is viable for those who do not want to waste time in preparing their investment pitch or involving the hassles of an investor.

6. Credit cards

This is a very short-term option and should be used as a last resort. Remember, your business credit needs to be very presentable to attract other investors. Make sure you deliver your payments every month regularly so that your credit score does not affect the image or reputation of your company in any way.

Whatever method of securing early-stage financing you choose depends on how much investment you require and how feasible your business idea is.

At First Union, we offer many financing options. Call today to find out how we can help you!

Becky: Hi! Let's find the best loan option for you

Google 4.8 star rating
Trustpilot 4.6 star rating

First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well. California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through VBJ Consulting, LLC, a licensed finance lender/broker, California Financing Law License No. CFL#60DBO78163

Copyright © First Union Lending, LLC. 2023