What are my options when it comes to borrowing money?

When it comes to borrowing money, not all debt options are equal--it's important to know which option may be the best fit and risk for your business.

This article from Inc.com outlines three common types of debt options for business owners:

  • Supplier
  • Bank
  • Mezzanine

Additionally, we see a lot of platforms like Shopify or Paypal offering advances on future revenues. While this can be helpful to put cash in the bank today, the lenders position themselves in a way that siphons a portion of revenue (often from day one that the capital is distributed). 

Unfortunately, this can also come at a steep interest rate, so be sure to fully understand the cost of the capital being borrowed.

The safest place to find money can often be directly from our customers. Ideally, there may be a way to offer a pre-order on a new product or you may be able to increase revenue to raise needed capital.