How do you find small business investors?


Quick Answer

To find small business funding, search for grants or loans, explore crowdfunding options or open a credit card account. Funding could also come from a combination of these options.

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Full Answer

  1. Ask family and friends

    Immediate funding may be obtained quickly and easily by asking family and friends. It may seem like an uncomfortable situation, but if treated like any other official business transaction, the outcome may be favorable. Just remember to document the transaction and reach an understanding on the business terms.

  2. Explore crowdfunding options

    Crowdfunding is an option that require research for funding sources. Online, there are several databases that pair investors with those seeking funds. Taking the time to compare the requirements of several crowdfunding website enables the small business owner to get the best funding source available.

  3. Apply for a credit card

    Although credit cards may not have the best interest rates, statistics reveal that more than half of all business owners use credit cards for business purposes on a regular basis. Definitely read the small print on credit card agreements so that all business partners know the expectations with regard to the debt of the company.

  4. Combine different sources

    Although family and friends may not have all the capital needed in certain situations, this options lowers the bottom line to help meet the needs of the company. If financially unable to get a large limit on a credit card or a small business loan, fill in the gap in funding by combining the amounts received from more than one source.

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