SOURCE: New Business Funders

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June 13, 2016 06:00 ET

How to Choose the Best Funding Source for Your Start-Up

SCOTTSDALE, AZ--(Marketwired - June 13, 2016) - New Business Funders (http://www.NewBusinessFunders.com) is helping start-ups learn how to choose the capital funding source they require for their business. Capital is the life blood of business. This is especially true for the start-up business that has yet to prove itself in the marketplace. But money to launch and fund initial operations is what differentiates a great idea from a real business with its doors open.

Troy Bohlke of New Business Funders LLC, a funding source for business start-ups, claims, "We have identified major sources of capital, but not all are suited to the start-up phase and often come with caveats. Start-up businesses are a unique niche in the financial world. Until recently, this niche has not been well served."

Bohlke advises that the key sources for start-up capital are:

1. Banks: It is a challenge for a bank to give an unsecured loan backed by future earnings potential. They want security, so will likely ask for additional backing in the form of family and other private sources. Also, expect to provide personal collateral.
2. Small Business Administration (SBA): A government program is filled with paperwork, of course. The advantage of an SBA loan is that it provides guarantees to a bank, allowing the bank to make the loan.
3. Angel Investors: A wealthy friend or group can provide funding, but will want a piece of the company to do so.
4. Local economic development: Cities and counties have development organizations designed to stimulate the economy via new business, construction and other means.
5. Crowd Funding: A relatively new format that allows multiple investors by reducing the hassle of going public and working through an investment bank.
6. Investor Pools: A group of investors will provide funding via funding companies that handle all of the operations.

While not complete, this list is focused on the start-up market, which has its own set of challenges. One company in this space is New Business Funding, LLC. It has designed a process in which funds can be gotten with minimal paperwork and a decent credit score. The process takes as little as two weeks to get a line of credit for your business.

"The advantage of a line of credit is its flexibility," explains Troy Bohlke. "We set up the credit line and then the new business owner can draw against this line as needed. If the line is paid down, then there is more credit available for use."

For more information on this breakthrough approach, please call New Business Funders LLC at 1-855-680-3426 or email funding@newbusinessfunders.com.

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