There comes a moment for every business when cash is needed imminently. I don’t care how big or how small your business is, when you need money fast for your business there is always a way. From selling the stuff your business doesn’t need, to getting a government bailout (yeah I am talking to you General Motors), there are a mix of strategies to raising money fast. Assuming you are company is not the same size as GM, you’ll likely need to rely on sources other than the government, but don’t rule out grants or SBA loans.
The Three Strategies To Raise Money Fast
There are three main ways to get money quickly. First is to take out a loan. This is where you borrow money and agree to pay it back in a specified period of time, and pay interest (the fee for borrowing money) in return. Loans can be made by financial institutions, like banks, or private lenders, like your rich uncle.
The second main way to raise money fast is by selling equity in your business. This is where a business or an individual gives you an amount of money in exchange for a piece of the business. Once they buy part of your business, they are a part owner. And the money they gave to you now belongs to the business.
The third main way to raise money fast is by a grant or gift. This happens more often than you think. The government may issue a grant or your rich uncle. Regardless who gives it to you, in a grant/gift scenario, the money is yours to keep and there is no requirement to pay back or to give up equity. But beware, the gifts often come with rules. And if you don’t follow them, your uncle may be throwing a turkey leg at your head at the next Thanksgiving dinner.
How To Raise Money Fast
Here are five more ways to raise money fast:
1. Sell Your Crap
No, seriously. I guarantee that you own items of value that you’re not using and don’t need. Get rid of them. Have a garage sale. Sell them on craigslist. Get rid of your clutter and turn it into cash that you can use for something you really need in your business.
2. KickStart Your Heart!
If you need money and are running out of time then you can always look to crowdfund your endeavor using Kickstarter, where you can have the public back your project while giving them a window for completion, budget needed for completion, and incentives (like your products or service) for pledging money. The cool thing about it too is that you can get funded without giving up any equity and actually acquire a bunch of customers at the same time.
3. Friends And Family First!
Family and friends are always a good go-to for quick money provided you have an idea that works and won’t let them down in the end when it comes to you turning a profit. You would have to go above and beyond to repay them because they are your friends and family.
4. A Simple Process
The good old bank would be your best bet to get money fast. If you have any receivables or assets, you could put those or even your business up against a loan and get as much money as you need at a relatively low rate. Also, if you have good credit, you may even be able to get an unsecured loan. And one good thing about the bank is they don’t become your equity partner.
5. Create An Expert Seminar
We believe in strong cash flow management in our businesses, so generating quick revenue isn’t generally a concern. If we have an unplanned desired expenditure, however, we want to pay cash. Often I’ll just create a small group seminar covering my area of expertise (making money with a blog).I create a date, post it to my site, and usually sell out in under a week.The seminars are really fun, the participants are appreciative for the information, and we have a nice little cash dump.
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