7 ways to raise money for your new business

Download 7 Ways To Raise Money For Your New Business

Post on 11-Jul-2015



Economy & Finance

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  • 7 Ways to raise money for a new businessby FitSmallBusiness.com

  • 1. Use Your Home(Home equity loan/Line of Credit)

  • Much lower interest rate than other types

    of financing.

    Advantage Disadvantage

    You could lose your home if you dont pay.

  • 2. Retirement Accounts

  • Business owners retirement savings accounts & Rollovers as business startups allow you to avoid

    early withdrawal penalties and taxes. (Must be registered as a C-Corp)

  • 3. Friends and Family

  • Keep in Mind1. Loans cause less issues than equity.

    2. Put the terms of the loan in writing.

    3. Have a 3rd party handle payments.

    4. Avoid interest free loans for tax reasons.

  • 4. Credit Cards

  • Keep in Mind1. Credit cards are not a stable source of credit.

    2. Credit cards have high interest rates.

    3. Your business could ruin your personal credit.

  • 5. Peer-to-Peer Loans

    (like Prosper.com and LendingClub.com)

  • Keep in Mind1. Must have a 660 credit score.

    2. Interest Rates are a couple of % less than credit cards.

    3. Your personal credit is on the line.

  • 6. Venture Capital

  • Unless you think a VC can make 10 times their money within 5 years, your business

    is not a candidate for venture capital.

  • 7. Angel Investors

  • Keep in Mind1. The best way to find them is through networking.

    2. You can also use angel.co and newyorkangels.com

    3. Structure the investment as a convertible note.

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