Funding - NJ Small Business Internet Marketing EYBO Blog By Regina Sawyer
Posted on 07/14/2021 in Financial Resources


Loan or Financing

Bank loans have always been the top-tier traditional financing method. It is also one of the go-to options for most new business owners when they need to raise capital. According to the SBA (Small Business Administration), about 75% of financing for new businesses are from credit card, bank loans and lines of credit. Despite the popularity of bank loan or financing, not all business loan applications are approved. Below are some of the basic requirements for approval:

  • Your business need to have been in existence for a minimum of two years
  • The business generates strong revenues of at least $100,000 annually
  • Has good credit score of at least 640

These requirements are not hard and fast rules and may differ depending on the bank. Other banks may accept lower credit score or annual revenues. Nevertheless, there are options and alternatives when things don't work out with the banks. One company that is helping business owners to get funding for their business growth is Fundwise.

The company offers assistance to both new and old business owners to help them raise the capital they need. That of course, depends on a combination of factors including credit score, credit line, ability to pay, revenue strength or business terms or experience.

Fundwise uses algorithm to analyze several factors including credit score, credit line, existing relationship with other lenders, payment history, average revenues of the business, and current funding sources, then match them with the needed amount of the borrower to determine which lenders are more likely to accept the loan application, how much will be approved and the order in which the borrower can submit application. This can lead to lower loan rates and maximum funding amount.


The ever-increasing dependence on the digital transformation has forced individuals to adopt internet-based resources like crowdfunding. From learning to marketing to communication, and even funding!

Crowdfunding has become a more popular way of funding because it has no geographical barrier. People from all over the world can participate in a crowdfunding venture they are interested in. It works by establishing an account with a platform like Go Fund Me that offers crowdfunding services. Create a post that states the purpose of your fundraising efforts, amount to raise and the deadline of pooling and share the link to anyone in the world. People who wants to donate may do so by simply clicking through the payment channels linked with the crowdfunding post.

This modern way of pooling funds has been greatly accepted by individuals giving it a 38.21% funding success rate. In fact, Kickstarter, another crowdfunding company, was able to raise about $4.9 billion as of November 2020 for successfully launched projects.

If you don’t want to go through the hassle of creating a good story for your crowdfunding, why not seek the help of a third party that can help you raise fund within three weeks? Click here for more info.

Personal Funding

Borrowing from a bank can be difficult, especially if you don’t have any credit line or you’re a beginner. So perhaps personal funding is the easiest way to raise capital for your business. Using your personal savings to fund your firm is probably the most cost effective.

The advantages of self-financing your business include knowing how much money is available, having more control compared to other financing options because you don’t have to pay back, and you retain 100% of your profits since there are no liabilities.

Despite these advantages, personal funding also has its disadvantages. When you use your own money for your business, your liquidity risk increases. You can exhaust your funds and even go into your reserves. If you run into an emergency situation, you may no longer have money set aside to take care of the situation. Moreover, if your business fails, you may not have money to start over again.

However, to minimize the risks of personal funding, it's better to find a way to earn supplemental income, while building your business. One popular income opportunity is affiliate marketing. Affiliate marketing is when a company pays you commission for driving traffic to their website and increasing its sales. It is essentially another type of advertising.

If you want to earn $800 to $1,000 per deal, learn more about affiliate marketing by clicking on this link.

Credit Card

About 70% of the US population carries a credit card, and 34% of which has at least three cards. This is probably why using credit card to fund the business is one of the most convenient financing method.

To use a credit card for business financing, you only need to have a good amount of available balance and use it to purchase things needed to start the business. This method of financing is fast and easy because there are no other requirements or intermediaries needed.

Although credit cards are the most convenient to use to finance the business, it is not the most cost effective, thus not sustainable in the long run. This is because credit cards have high borrowing interest rate.

If you don’t have an available credit line, you may want to try this to help raise capital for your firm.

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