How to find short term business finance if you are self-employed

When starting your own business, it can be tough to get business finance. Not only do you need somewhere to run your business, the right equipment and stock but also, you’ll need cash to keep your business running on a day to day basis.

That being said, there are plenty of ways a business can obtain a little help in the money department. In fact, with the help of technologies, start-up businesses have a much wider access to finance than they used to.

Here are some ways you can get access to some short-term cash to keep your business afloat.

  • Self-funding

Although not always possible, self-funding can be a really easy way to get your business off the ground. If you’re lacking a little in finances, it may be worth starting a business as a side-hustle and building it slowly until you’ve got enough cash to go full-time.

It also gives you a bit more security, if things don’t go well the first-time around. As well as having no financial moguls to report to.

  • Overdraft

In the short-term an overdraft can be a really useful financial aid. If you’re looking a little low on cash, you can dip into your overdraft as you need and make it up when a sale is made, or money is coming in.

You’ll be charged interest, but it is based monthly and can be a lot cheaper than credit cards or short-term business loan interest. You can also agree with your bank on how much you can have, but you will need to demonstrate a good credit rating in order to get one.

  • Crowdfunding

Crowdfunding is now a popular way for business to get backing from the general public. Rather than go to high-flying investors, you can have multiple investors who you can pitch your business too.

It’s not only a great way to make some money for your business but can help with your marketing too and get customers through the door quickly. With crowdfunding you set an investment goal and pitch online to people who may want to get involved.

  • Bank loan

If you need a cash injection into your self-employment business, it might mean going to your bank to ask for a loan. If you’re not a limited company, you may have to look into getting a personal loan.

Most banks will want a business plan and to see your current financial activities, as well as a credit check. If you’re not eligible for a business loan and enter into a personal loan agreement, it can be risky if things don’t go as planned.

  • Short-term business loan

For self-employed people, it’s not always easy or viable to get a business loan from a bank. Especially, if you’re suffering from cash flow problems. However, there are alternative lending options for those looking for some short-term cash.

This short-term business finance option, offered by companies such as Cashsolv, gives people a quick injection of cash and a structured repayment plan. It can help to get some new equipment, expand your business or help to get new premises.

  • Angel investors

Getting investment from external parties can help to give your business a boost. Business angels who have a high net worth are normally looking to invest in start-up or smaller companies.

Unlike a loan, any return they will get will be dividends made from the company, which is great compared to some interest rates that banks or lenders will set. However, it does also mean you’re giving up part of your company and potentially some control, so it’s worth considering your options before getting an investor involved.

  • Government funding

Some government schemes offer small businesses grants and financial help. There are also some charities and businesses that can provide grants too. You are likely to need to produce a full business plan and pitch your business in order to obtain one, but there can be help available.

It’s important for the economy for small businesses to grow and develop, so there is always help at hand. Yet, there are often criteria are attached so it’s well worth it to do your homework.

For small businesses, start-ups and self-employed, there are methods out there to get funding to give you a boost in your cash flow. As long as you believe in your business and work hard, there will be people that are willing to help.