When you run your own small business, you can acquire small business loans at any point in your business journey. When you are responsible for your loss and profit, you know that sustainability is not easy although you’re your own boss. Business loans come in a variety of types from which you can choose according to your requirements and capabilities.
First, let’s see what are the latest popular Business opportunities waiting for you out there…
• Online shops: With a laptop, a good internet connection, and a business mind you can start your own online business. Drop-shipping shops are the latest fad, where you don’t even need to own the stock. You just connect between the customer and the manufacturer and get a nice commission on each sale.
• Flower shop: You can open a flower shop at a good location where you will target the right market, like in a mall or in a busy street. You just need to have good knowledge of flower types or take a few courses to learn it all.
• Cellphone loading business: All you need is a phone, sim card and a small amount of money. Loading cards is a very common need in the Philippines. This can be a very good small business.
• Make Money from Your Car: Driving has become another type of business that has proven suitable and profitable for thousands of people in the country. In this case, you just need to sign up with an app like GRAB, maintain your car well, be nice to your passengers, and you can earn a lot of money by putting your car to work.
• Arts: If you have certain artistic skills and you can create home-made products like necklaces, bracelets, artful cell-phone cases or anything like that – then you can make a lot of money. You can sell these online through Facebook, Instagram or other social media channels, or create an online shop. You can also sell your products in street bazaars and outdoor markets.
8 Ways on How to Fund Your Small Business
It’s obvious that at some point in your business career – you will need funds to start or expand your business. You might need to find startup loans first, or if you’ve already started a small business with your own money, you might need some loan to run or expand your business at some point. Here are some examples of how you can fund your small business.
1. Family and friends
It seems easy to borrow loans from your family, but it’s complicated to mix your personal life with your professional life. If you take something from family or friends it might endanger your relationships, which is not good. If you are 100% that you can return the money – then it’s fine, but if you’re not – then avoid this option.
2. Term Business Loan
Terms loans are also another gateway to easy short-term or long-term loans for entrepreneurs to meet their needs and keep their own funds intact. It’s a good option for startup owners who want to make their repayments through regular installments. The term business loan can be used in buying equipment, construction, renovation, or purchase of office space, stores, or for increasing production or expanding a business and most ideally can be used in financing a franchise business.
3. Credit Cards
Credit cards have become an extremely useful part of launching a small business. In fact, credit cards have been ranked in the top 3 most popular sources of cash for small businesses, together with bank loans and the business revenue itself. Credit cards offer convenient access to cash and allow you to easily pay off the short-term expenses of your business. Credit cards also help build up your business credit, which other lenders usually use to evaluate if your business is eligible enough for a loan. Today it’s quite easy to check your credit card eligibility.
4. Crowd Funding
Crowdfunding is online platforms where you can showcase your business to the crowds, and they will decide if to sponsor your business or not. Famous crowdfunding platforms are Indigogo and Kickstarter. Crowdfunding is still at an early stage in the Philippines, but we are quite sure it will grow bigger over the next few years.
5. Online loans
As people are becoming more dependent on the internet, it’s also become easier to find lenders online. Through online lending platforms, you can get a loan at a very short span of time, but do make sure beforehand that the online platforms you apply for are properly registered – because there are lots of frauds out there too. Check on reliable personal loans online providers. When applying for these online lending sites, you need to be aged between 21-50 years of age and must work in the Philippines. Another eligibility is that you must be currently employed or self-employed. You should already have a bank account too.
6. Secured Business Loan
If you have a valuable asset that you’re willing to put up as collateral in order to get funding, then a secured business loan is ideal for you. You can put real estate properties and bank deposits as collateral which reduces the risk for lenders. That is why secured loans generally have lower interest rates, longer loan terms, and higher loan amounts than unsecured loans. A secured business loan is an affordable and suitable option for startup businesses that need funding at a time when they’re just beginning to make profits.
This is when a few people create a group and decide to pool in a certain amount every month, and each month one person in charge collects money from that pool. This is a good way to raise money for your business unless someone from the group disappears without giving their share and ruins your wagon! Only join groups of trusted people that you personally know and are sure will not disappear.
Pawnshops can lend you money easily for your business dream. The big disadvantage is that pawnshops usually give you much less money for your item, than its real value. Although it’s an easy and fast way to get small business loans, the interest rates are also usually very high. You’ll also have to make sure to return the money on the agreed date – otherwise – you might lose your item.