How Your Small Business Can Get Private Funding

No small business can grow or even survive without adequate funding. Small business funding includes the need for working capital, purchasing assets, investing in new products or services, and seizing new opportunities.

What is a Private Business Loan?

Funding is sometimes difficult to secure through traditional channels. Private lending is simply any type of funding provided by non-bank lenders. Securing small business funding from private lenders helps to overcome the challenges of meeting the strict regulations and restrictions of banks and to expand businesses’ access to capital.

Benefits of Private Funding

Private funding offers these benefits:

  • Increased funding because lenders can set higher valuations on the applicant’s business.
  • A business can obtain “equity capital,” offering partial ownership of the company in exchange for the capital obtained.
  • Shorter approval times are normally achieved.
  • Fewer requirements mean that lending can be approved more easily.There can be beneficial involvement from the investor, including guidance and other assistance.

Sources of Private Funding

Small business funding can be secured from these private sources:

  • An angel network—a group of investors who invest collectively to provide stronger mutual support.
  • Private equity firms—firms that specialize in investing in startups with strong potential growth, with the aim that they will sell their stake later-on to reap profits.
  • Incubators and accelerators. These are investors who aim to finance companies to see them grow. They sometimes advise and even host a company’s offices to help nurture them into growth and success.

How to Get Private Funding

Small business funding secured from private investors stems from networking and personal relationships. It will require plenty of research and outreach to find and secure the right match. It will be important to develop a solid business plan, detailed financial plans, and to be completely transparent with potential investors.

Seek Expert Funding Assistance

Contact Coastal Commercial Lending based in Virginia Beach, VA, and servicing commercial loans throughout the United States and into Canada. With a wide variety of financial products, we make finance the easy part of growing your business.