# 4 Ways to Scrape Up Extra Funding for Your Business

- Link: https://www.lumlawgroup.com/4-ways-to-scrape-up-extra-funding-for-your-business/
- Published: 2019-07-26T11:11:22-07:00
- Author: Albert J Lum

Searching for additional funding for your business can feel like a business within
itself. With so much information available, it can be overwhelmingly time-consuming
to comb through it all to figure out which sources are credible and worth your time.
Read on to learn four ways you can find extra funding for your business. 

## 1. Business Grants

Funding your business through business grants is an often-overlooked option. Grants
are different from loans in that they do not have to be paid back, which can make
them very appealing to some. However, applying for a grant can be a lengthy process
of quantifying on paper why you are the best candidate for the grant.  In order 
to qualify for a grant, it’s best to hone your writing skills or hire a professional
grant writer. 

It is also wise to search for grants on an ongoing basis rather than wait until 
you are desperate for money. Similar to school scholarships, grants come in all 
types and amounts, and each one is specific to the demographic it is meant for. 
When searching for grants, it is common to come across scams, so the best place 
to look for grants is on an official government website.

###### Resource: 󠀁[https://www.valuepenguin.com/small-business/small-business-grants](https://www.valuepenguin.com/small-business/small-business-grants)󠁿 

## 2. Business Loans

Business loans can be a good source of funding for your business, but you should
be careful. As a business owner, you need to know yourself well and decide if you
are comfortable taking on debt that you may be personally responsible for.

One of the main reasons people apply for business loans is because they need the
money to scale and have grown beyond their ability to fulfill orders. Always have
your paperwork in order with your current data so that you can expedite your loan
application process as soon as possible. Along with having a good credit score, 
you may have to meet additional requirements for having been in business for a certain
length of time in addition to generating a certain level of revenue. 

###### Resource: 󠀁[https://sunwisecapital.com/bad-credit-loans/](https://sunwisecapital.com/bad-credit-loans/)󠁿 

## 3. Angel Investors

An angel investor is usually one person (as opposed to a hedge fund) who provides
capital to businesses they believe in. While angel investors are wonderful to have,
you cannot risk your business by depending on one. Finding an angel investor is 
as easy as searching the web, but the hard part is scheduling an opportunity to 
pitch to them and then nailing it.

Additionally, the financial blessings of angel investors often come with strings
attached.  It is seldom free money. The terms of the investment vary for each situation.
However, usually the investor becomes, at the very least, minimally involved in 
your business.

Think of an angel investor as similar to a hedge fund in the sense that you are 
beholden to the initially agreed-upon terms.   

###### Resource: 󠀁[https://donnagriffit.com/guides/the-ultimate-guide-on-how-to-find-an-investor-and-get-a-meeting/](https://donnagriffit.com/guides/the-ultimate-guide-on-how-to-find-an-investor-and-get-a-meeting/?gclid=EAIaIQobChMIjsm2o4DE4wIVRL7ACh0YpQXAEAMYAiAAEgJqbPD_BwE)󠁿

## Crowd-sourcing

Funding via crowd sourcing is not just for musicians and artists. Over the past 
decade, crowd-sourcing has become a respected avenue for acquiring business funding.
Consider using government websites for crowd sourcing education in general, and 
then begin with [Kickstarter](http://www.kickstarter.com) as just one example of
the format.

###### Resource: 󠀁[https://digital.gov/event/2019/04/09/federal-crowdsourcing-mobilize-citizen-scientists/](https://digital.gov/event/2019/04/09/federal-crowdsourcing-mobilize-citizen-scientists/)󠁿 

Now that you have a little more information about where you may be able to find 
additional money to fuel the needs of your growing business, go out there and get
searching. 

**Need more assistance setting up your new business? **[**Consult Lum Law Group**](https://lumlawgroup.com/Staging/portfolio-galleries/business-law/)**
about legal complexities that might affect your business! **