What can you do to get immediate cash flow to take advantage of an investment opportunity? You might be surprised to find out that a little creative thinking and brainstorming can offer you a multitude of options.
It’s not as difficult as you might think to get money if you can back up your desire for it with a solid plan that will convince investors or borrowers that you will be able to easily pay them back in a timely way.
Your best chance of success will depend on the type of investment opportunity. If, for instance, you are investing in your own business, i.e. launching a startup, you might be able to interest investors rather than just relying on lenders. Other factors influencing your success are how much you need and when you need it. If you need money fast, you will probably be able to get a small amount quickly. If you need a large sum, this may slow down when you receive it because it will require deeper verification.
With those caveats in mind, let’s brainstorm some ways you can raise money you need for a business opportunity:
1. Get money by tomorrow.
If you need a modest amount of money fast, businesses like Blue Trust Loans at bluetrustloans.com can deposit as much as $1,250 into your personal or business bank account by the next business day. All you have to do is spend five to ten minutes filling out a secure online application. After you get approval, simply eSign your loan documents. Then call the company or wait for a customer service rep to call you. The rep will verify your details and send you an email with a copy of your application. You can then receive the money as soon as the next day.
2. Ask Angel Investors or Venture Capitalists.
You will be able to get money from this investors if you need the money to launch a start up and can forecast a predictable rate of return. For instance, if you invent a new type of software and want to launch it fast, you have to convince investors of the market demand. The cost, however, may be steep — you will have to give away a portion of your business. The difference between the two is that an angel investor is a wealthy person while a venture capitalist represents a firm.
3. Tap into your Retirement Account.
Claim up to $26,000 per W2 Employee
- Billions of dollars in funding available
- Funds are available to U.S. Businesses NOW
- This is not a loan. These tax credits do not need to be repaid
If you have a retirement account and need the money to launch a startup, you might be able to apply for a loan called Rollover for Business Startups (ROBS). It costs about $5,000 to apply and you will have to pay $1,500 a year in continuing fees. You won’t have to pay early withdrawal penalties and you won’t have to pay income tax.
4. Get a microloan from a Nonprofit Lender.
The cost of this type of loan can range from 18 percent to 35 percent in annual interest. If you don’t have good credit, you may need to get a cosigner. You can raise about $10,000 this way.
5. Borrow from a Peer-to-Peer site.
The origination fee to get a loan from a Peer-to-Peer (P2P) website is from 1 percent to 6 percent. This money is pulled from your upfront lump sum. In addition, you will have to pay interest, and this can range from 5 percent to 26 percent. The good news is you might be able to borrow as much as $40,000 from a lender on the website. Naturally, you will need to have excellent credit to get this type of loan. It must be a minimum of 650.
6. Use a Credit Card
Depending on the card you get, your annual fee might be between $50 to $100 and the cost about 16 percent interest.
7. Borrow from your life insurance.
If you have life insurance, you might be able to borrow from it. However, this will only work if carry permanent or whole life insurance.
8. Utilize the Equity in Your Home (HELOC)
If you are a homeowner, you can leverage the equity in your home. Your home value should be around 15 percent. Your cost will be between 2 percent to 5 percent in closing cost. The annual interest will be about 3 percent to 6 percent.
9. Try Crowdfunding.
Crowdfunding has become increasingly popular as a way to raise money. The cost is from 5 percent to 10 percent of the money you raise and incentives or rewards like gifts, a share of your business, or something along those lines.
10. Ask your family or your friends.
Offer a Promissory Note. If the loan is for three years or less, the interest rate is about 0.38 percent and if you borrow for more than three years but less than 9 years, it can be about 1.85 percent. Of course, you have to have a good business plan, and it’s advisable to have the loan in writing to avoid any problems down the road on remembering how much money you borrowed.
The ideas that will work depend on how much money you need, when you need it, and for what purpose. First, clearly define these factors. Next, find ways to prove your idea is worth investing in. Finally, find ways to incentivize lenders or investors.