Startup financing is one of the most crucial challenges for a startup.
Startups commonly use venture capital or business loans to finance their staffing expenses, product development, and marketing efforts.
Venture capital is where investors put corporate funding into launching startups in exchange for a stake in the business.
Business loans are of two types, secured or unsecured loans, but most startups go with unsecured loans, which require a proven track record in business and a good credit score.
Opening a line of credit with a bank or credit union can be a good option for entrepreneurs with great flexibility and lower interest and fees than credit cards.
Borrowing Against Your Investment Portfolio can be a viable option for startup funding if you have an extensive and safe investment portfolio.
There are other non-traditional sources of financing options available for startups, including angel investing, crowdfunding, and minority business loans.
Business Center for New Americans, Small Business Administration (SBA), SBA microloans, the African American Loan Fund, and grants.org are some minority business loan resources.
Select the best financing option for your startup by understanding what your new business needs and your worth or tolerance for risk.
Funding a startup takes innovation, ingenuity and the right resources.