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Alternative small business funding: The easiest way to drive growth

How to choose business funding

As every small business owner knows, it’s sometimes necessary to source external funding. But where do you even start when the options range from traditional lenders to alternative small business funding? Extra funds can help you drive growth and expand into new markets. You might have a great product or service, but without extra funding, your opportunities for growth could be severely limited. And trust us, talking your friends’ ears off about why your product is the best really doesn’t work. Seriously. All you’re going to do is ruin a lovely dinner party.

The problem is obvious: You need working capital to funnel into business growth, but your expenses are holding you back. And without meaningful company growth, there’s little to no way of increasing your capacity. This means your business’s monthly income will be static. Much like a hamster in a teenager’s room, you’re trapped in a never-ending cycle, running full tilt but making zero progress. 

WHY DO I NEED BUSINESS FUNDING?

With a simple injection of cash, your options would open up. You could hire the best talent, purchase the right equipment, set up new offices, and market your product or services to the right audience. This would give your business a competitive edge in an increasingly saturated marketplace. 

Not ready to take those steps just yet? Some working capital will allow you to take a step back and consider the most effective growth strategy. A considered, strategic approach is always a smarter move than making spur-of-the-moment decisions. It’s better to be strategic than driven by your immediate need for more income.

If any of the above sounds like you, you’re not alone. Young companies across the globe have been and still are grappling with the issue of how to grow their business without the funds to do so. Luckily for you, there’s a simple solution that could propel your company to new heights of success. 

But first, let’s look at the pros and cons of the various funding models available to small businesses. 

WHICH Business funding IS BEST FOR YOUR SMALL BUSINESS?

There are a few options new companies can choose from to secure the financing they need. In brief, they are:

Small business loans

This is usually what people think of when they consider funding their business. Small business loans come in many forms, and not all are equal. For example, borrowing from your bank may see you committing to high interest rates. You may have to wade through a sea of red tape before you actually get your hands on the funds you need. The recent interest rate hike will also drive higher interest rates on your loan, so now is probably not the best time to approach a bank for funding. 

Funding rounds

Some young companies seek funding from independent investors, trading ready cash for company equity. There are two downsides to this approach. Firstly, investors can be hard to find. You may have to sink a lot of time and energy into finding and pitching prospective investors. Secondly, when your business takes off, you will not have full control of the company. This will negatively impact your ability to influence decision-making. You might end up feeling like you’re in the driver’s seat, but you’re legally obliged to listen to a backseat driver yelling nonsensical instructions at you. Oof, we just got the chills…

Crowdfunding for your small business

We’ve all heard of success stories about people who launched a company using capital raised on GoFundMe and Kickstarter. But as with most things in the business world, you’ll only hear about the ones who made it. You’ll also have to give your funders something in return for their investment. This might be company equity, early access to products/services, free products/services once launched, etc. Lastly, all your efforts might be in vain if you don’t reach your goal. Most crowdfunding platforms only trigger payouts if you hit your target, so you could waste all that time and effort.

Alternative business funding

Alright, now we’ve got the standard funding models out the way. It’s time to tell you why alternative funding is the most ideal choice for your small business. Alternative funding partners, such as GroWise Capital (nudge nudge, wink wink), are able to offer a much more flexible approach to getting you the cash you need. 

Forget the red tape of borrowing from banks. Forget the arduous hours of hunting down investors. And definitely forget the disappointment of missing out on a payday because you didn’t reach your crowdfunding goals. Alternative funders are able to cut through the noise to deliver a hassle-free funding process. In simple terms, this means you can get the funds you need without having to jump through hoops.But 

Which business funding is best for your business?

At GroWise Capital, we’ve seen how hard it can be for SMMEs to get the right funding solutions for their individual needs. We know that you could wait for months before actually getting your hands on the capital your business requires.

That’s why our approach to business funding is different. 

Driven by a passion for helping entrepreneurs grow their businesses, we focus on designing the ideal tailor-made funding package for your company. This lets us simplify the process, putting the cash in your hands as quickly as possible. 

In fact, we’re able to offer up to R3 million in business funding in under 24 hours. In some cases, you could be spending your newly-acquired funds just 45 minutes after we receive your application.

Get in touch with us today to chat about the alternative funding opportunities we are able to offer your small business. You can also find out more about our funding packages and apply now here.WH

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