A financial emergency can affect a number of businesses at any time, but with careful preparation and some forward-thinking, you can begin to generate the money needed to help your business out of a financial emergency. But what are your options, and how will they work for your business? In this article, we will be looking into some of the options for your business.
When running your own business, particularly in the early stages, it can be difficult to find the finances that you need to fund a specific project. If you find yourself in this financial difficulty, you can turn to options such as crowdfunding to generate the additional funds needed. With platforms such as GoFundMe, Indiegogo and Funding Circle, you can begin to gain interest around a specific product and gain the funds needed for production to begin. Though the success of this style of finances is dependant on the product or service that you are promising, this is the perfect way to generate a buzz around your company and its products.
Borrowing From Friends And Family
Another way that you can gain the finances needed is through borrowing from friends and family. Though this may seem strange at first, this is ideal for a start-up business as you are not required to pay interest on any money borrowed. This can then be paid back in full when your business begins to generate revenue, allowing your business to begin full-time operations without any additional debts to a third party.
If you are unable to borrow money from your friends and family, there is also the option of gaining a loan from a bank or third-party lender. With options such as bridging loans as well as business loans, there are a number of ways that you can gain the money you need to maintain the daily operation of your business, even in a time of a financial emergency. In addition to this, there are a number of options at an affordable APR to ensure that your business can afford your repayment method with ease to avoid complications.
The final way for you to find the money that your business needs are through a fundraising event. Whether this is to generate buzz around a new product that is in development stage, or this to raise money for a new piece of equipment, fundraising can help to generate cash flow and boost brand awareness with a few simple options. Whether you decide to host a funfair or a competition with a cash contribution for entering, this can help to generate the cash needed to help you afford what you need without having to stretch the budget to breaking point.
With this in mind, there are a number of ways that your business can generate the revenue needed to help you out of a financial emergency should you find yourself in one. Which one would work well for your business?