10 Tips on Raising Capital

March 22, 2015 Moneris

Whether you’re starting a new company or growing one to the next level, an influx of capital is often needed for small business success. Here are your 10 Quick Tips for raising capital:

  1. Have a current business plan so that prospective sources of loans and investment can see how you will spend the capital you receive.

  2. Develop relationships with your bank manager and loans officer before you need cash.

  3. Any time you are offered credit by your bank, take it. (It’s easier to get a loan when you don’t need it than when you do.) Don’t use it unless you absolutely need it.

  4. Look to yourself first. If you have already lent money to your business, others are more likely to do so as well.

  5. Talk to your bank or credit union for small business or government-backed loans.

  6. Family and friends may be interested in participating in your business. If you do take a loan or investment from them, make sure the terms are clearly defined in writing.

  7. Angel investors are individuals who are willing to invest in high risk ventures but also expect a high return. You can network to find these people or search online directories.

  8. Venture Capital firms are sources of larger amounts of capital and typically are interested in monitoring the operations of your company.

  9. Credit cards are good to bridge finance for a month or so but the interest rates are too high to be an ongoing source of capital.

  10. Microloans are an option if you are looking for a small amount of money (only a few thousand dollars at most) and can be sourced on websites.

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This article is for informational purposes only and it is not intended to provide you with any personalized financial, marketing, accounting or tax advice. Neither Moneris Solutions Corporation (Moneris) nor any of its affiliates shall be liable for any direct, indirect, incidental, consequential or punitive damages arising out of use of any of the information contained in this article. Neither Moneris nor any of its affiliates warrant or make any representation regarding the use or the results of the use of the information, content and materials contained in this article in terms of their correctness, accuracy, reliability or otherwise.

About the Author

Moneris

Moneris processes more than 3 billion credit and debit card transactions a year, for over 350,000 merchant locations across North America. We have over 1,300 dedicated employees who understand transaction processing and know how to make it work for you.

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