If angel investing isn’t right for your business, you have plenty of other small-business funding options.
For example, if you want another type of funding that doesn’t require you to repay a loan, you can look into grants. Grants will give you free money for your business, making them a super appealing option for most businesses. The downside? Grants require lengthy applications, and they’re highly competitive. Plus, the funds may be earmarked for specific uses. Even so, grants are an option for free cash.
Then there’s crowdfunding. There are plenty of sites that offer crowdfunding for startups (though Kickstarter is our favorite). You pitch your idea to the world, and if people like it, they’ll help fund your project. Usually people fund in exchange for some kind of reward, but equity crowdfunding is common too. If your product clicks with people, it can be a boon for your business. But with so many companies competing for people’s money and attention, you’ll have to invest plenty of time into making your pitch.
And of course, there are loans. Unlike angel investors, grants, and crowdfunding, loans require you to actually repay the money you get, which makes it a less appealing option. But loans are a tried-and-true way of funding and expanding businesses, and you have tons of loan options. So while it may not be your first choice, there are plenty of reasons to get a startup business loan. For the record, we’ve found Lendio to be the best source of loans for most businesses.