Options to get more money for your business

Small business owners are constantly faced with the challenge of how to generate more cash flow.The reality is that running any business is expensive and small businesses often face the most difficulty in having the cash they need.Worse yet traditional financing may be out of reach for start-ups and some small businesses. This often leaves small business owners wondering how they can possibly keep their business afloat.But with a little creativity and planning small business owners can generate cash flow to keep their business growing strong.Here are some options to get more money for your business-

• Use money from a regular job, part-time job, one-time gig, or contract work. Many small businesses are based on a lot of determination.If your business is in the fledgling stage you may not be able to give up your day job.If you can you still may have to work part-time or do contract work outside of your business to generate more cash.
• When you generate cash from your business quickly re-invest it (also known as bootstrapping). When beginning your business you must realize that it may not be a real moneymaker for quite some time.This is why financial experts recommend having at least one year worth of expenses in savings before you open your business.This way you will not have to depend on your business to pay your bills.
• Get a personal loan from family members or friends. You should keep in mind however that this can be fraught with difficulties.To avoid damage to the relationship you will want to draw up papers detailing how and when the loan will be repaid and what if any interest will be charged.
• Set up a credit line with corporate credit cards.Even in a tightening credit market this is still sometimes possible.If you cannot get corporate credit you can resort to using personal credit cards.It is crucial however that you shop around to find the best interest rate possible.
• You can borrow from your bank or credit union, by getting a secured loan using your personal assets (such as your home) as collateral. It is crucial to keep in mind however that if you default on the loan and your house is the collateral you will lose your house. A better move may be to get a loan secured by business assets such as inventory, real estate, or equipment.
• Try finding a co-signer for a loan if you do not have assets to use as collateral.
• Get a bank loan that is backed or guaranteed by the Small Business Administration.A major benefit of these types of loans is that they may be a little easier to get.
• Consider factoring your accounts receivable; that is sell your unpaid invoices to a factor who will then pay you part of what you are owed now, and more when the full amount is collected.It is important to keep in mind that this is done by charging you a monthly fee.
• Consider working with a venture bank. These banks typically offer a variety of funding methods and tend to work with companies that have strong potential for explosive growth and profitability.
• Issue corporate bonds. A business can structure its own deal with a stated interest rate and term length, and then sell the debt instrument to investors. You may also want to consider finding angel investors or a network of angel investors who will give you money in exchange for equity in your business (common stock or preferred stock).