- Posted by Donna Amos
- On March 22, 2015
- Funding for Small Business
As any small business owner will tell you, it is particularly difficult to get funding to start or grow your own business. This is particularly true with solo entrepreneurs, as they do not have partners to invest money when they are starting their business. Solopreneurs’ business capital generally consists of whatever you can scrape together. That might even mean putting your life savings on the line to get a shot at being your own boss. Another option is to turn to venture capital investors, who will provide funding in exchange for a share of future profits and some amount of control over how the business is run until they exit. Neither of these scenarios is ideal, and the only way to avoid them generally involves starting very small and expanding gradually (what is known as the stair-step approach). You’ll gradually introduce enough products that you can basically buy out the time you would spend at your normal job and put all of your effort into the new company.
Companies like FundWell offer an alternative for solopreneurs who need business capital, one that does not involve sinking your life savings into a new business or bringing on a venture capitalist. Now when you are turned down by the bank, don’t give up. Fundwell essentially matches solopreneurs and other small business owners with lending companies that are willing to give them access to cash. While the amount of capital you are eligible for is highly dependent on your credit score, the lenders FundWell works with are reputable, and you will get access to the capital very quickly.
To get started, all you need to do is enter some basic information about how much you’d like to borrow and the time period in which you can pay it back. FundWell then matches people with loans that will suit their needs and assists with the application process. In addition, the site can help people find loans with the lowest interest rates and terms that are preferable for borrowers.
However, as a solopreneur, you will need to submit quite a bit of information when applying for a loan. Because of this, it is important that you keep thorough financial records of everything that has gone on in your business in the last several years. To complete the prefunding application, you’ll need to know your sales figures for the last few years in addition to your personal credit score.
In addition to matching solopreneurs with lenders who are willing to loan them money, FundWell provides assistance with company financial wellness. The site has a weekly blog that gives people information to get their business into the right shape to apply for a loan. The blog also gives individual business owners tips on how to grow their businesses in a sustainable way. Topics include action plans and tips on setting goals and evaluating a business’ financial health. You may even with to follow @thefundwell on Twitter so you can stay up with their expertise. With Fundwell, you get everything you need to get your company off the ground and keep it growing at a steady rate.