If you want to start a business, you need money. This is possible with a business loan, but as a starting entrepreneur it is often difficult to take out such a business loan with the bank. Fortunately, there are several ways to finance the company. We give you seven other ways to borrow money for your business and tell you how you should not do the borrowing of money for the business.
In order to take out a business loan , you have to meet certain requirements for the bank. So it is to your advantage if your BKR registration is positive, you can prove with proof that you can actually pay off the financing and that you are willing to give up the company or even your own home as collateral. If you do not meet this requirement, there is a very small chance that you can take out such a business loan. And if you do get this, that this can only be done at very high interest rates. That is, of course, very unfavorable, because that means borrowing money much more.
Closing a private loan is not allowed
If you can not get a business loan from the bank, there is still plenty of opportunity to borrow or even receive money. Unfortunately, you can not borrow money privately for the case. You always have to give up at the bank for which you take out a loan, you have to be honest about this. You could of course take out a personal loan or an ongoing loan to use this money for a personal purpose and then use your money for the company.
Loan from the government
With a good and realistic business plan you can try to get money through one of the government’s initiatives. For example, with the Innovation Fund SME + you can receive a ‘subsidy’ between € 50,000 and € 250,000. You must repay this amount. You can also opt for a microcredit, where you can borrow up to € 50,000. If you want to claim a government loan, there is something wrong with that. She wants to advise and guide you before, during and after starting your business.
Alternative financing options
Do you want or can not take out a business loan? Then as an entrepreneur it is also an option to go for one of the many alternative financing options. These are loans that do not come from a bank. However, banks and alternative financiers sometimes work together; banks then finance part. You can also combine certain payment options in a financing mix. Think of financing from your own company, subsidies, Startup Box, family and friends and crowdfunding.
Popular: Online credit
Is it not possible to borrow money from the bank as a starting entrepreneur? Then try to call on online lenders . These are independent organizations that provide credit to new entrepreneurs who do not meet the acceptance criteria of banks. Via such parties you can borrow up to € 250,000 in most cases. The online credit application is fully online. At most companies, you will receive confirmation within a few days whether you are eligible for the credit, so that the requested amount will be in your bank account for the same week. Some lenders also look at social aspects, so if you do something for society, you certainly have an advantage.
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what the costs are for your business loan
This way of raising money for the financing of your company is certainly worth a try. Especially if you do not need a very high amount, but you do have a gunfactor with the people. Through crowdfunding you ask other people to ‘sponsor’ your company online, they grant you their money, then they will donate this. That way you can try to get the desired amount together.
Find an investor
In addition to crownfunding, you can also look for someone who wants to invest in your company. For example, there are rich businessmen and women who want to invest private capital in promising startups. You also call these informal investors, and these can be found through venture capital organizations. Then there are the big companies that want to invest money in unquoted shares. These are private equity investors.
Save, friends and family
A good idea is to first see for yourself how far you are coming, and to start saving before you start a business. This is only possible if you know a long time in advance that you will start a business. Put your money on the bank, you will still receive interest on it. That is a lot more favorable than borrowing yourself and having to pay interest on this borrowed amount. Do you have little, or just not enough, money to start your business and do not want to use any of the above options? Then you can always choose to borrow money from friends or family. Make sure you make good arrangements and that you are sure that you can pay the amount back. Otherwise, you will not be the first to be caught up in a family quarrel due to money matters.