How to Seek Financing in Tough Times

Small businesses are known as survivors – Many businesses are hard-hit by the recession, but many businesses are also survive it.

A business is not necessarily a bad business if it is not performing well, especially in tough times – Sometimes it’s a bad business because it lacks funding to break through the sales and cash flow barriers.

For example, a retail business is experiencing cash flow difficulty not because the receivable problems, but because it need investment to grow the business.

Here is a few tips on how to seek financing in tough times…

1. Gather your courage and go for the conventional source of fund – bank and, of course, friend and family.
2. Crowd fund your business – There are networks of investors, particularly online, that are more than willing to crowd fund (a mass of people interested to loan a small sum of their money to you) your business, in exchange for a percentage of money.
3. Sell your business partially to investors – You can seek for partners that interested in investing in your business, preferably as active partner.
4. Seek sponsorship from interested companies that are willing to exchange fund for adverts or branding at your business.

Please share your financing strategy with me and the blog readers so we can benefit from it.

Cheers!

Ivan Widjaya
Creative financing