12 Platforms to Access Quick Funding for Your Side Hustle (Low Eligibility Requirements)

12 Platforms to Access Quick Funding for Your Side Hustle (Low Eligibility Requirements)

Most new businesses fail within the first five years of starting…those that survive the budding phase value the importance of capital and cash flow as a top factor for business survival and growth.

One of the most important business decisions that most business owners make is how to access funds for their business.

Business grants and loans help business owners manage working capital, equipment purchases, staff expansion, and so on.

If you are considering funding your business idea or you need funds for an already existing business, read through this article to discover places where you can access funds of a minimum of $1000.

Key Highlights

🎯 The ecosystem for grantmakers and grant seekers changes annually due to economic trends and international factors.

🎯 The federal government is the sole and main source of grant financing.

🎯 In the private sector, 18.4% of American companies fail during the first year. In five years, 49.7% of firms fail, and in ten years, 65.5% of businesses fail.

NEW SIDE HUSTLE IDEAS EVERY WEEK!

ADD ME

Loading...

Thanks for joining!

Get ready to implement what's coming to your inbox.

🎯 56 percent of small businesses seek finance to increase their revenue, seize an opportunity, or buy equipment.

🎯 According to data from the British Business Bank’s 2019 Business Funding Survey, working capital is the primary need for funding among small firms.

SEE ALSO: 9 Smart Moves to Make With $1000 In The Bank

SEE ALSO: 15 Successful Personalities That Started Their Side Hustle From Nothing

SEE ALSO: 15 Books That Will Help Reshape your Entrepreneurial Mindset

Where to Access funding

Funding has been a major problem for many businesses in the last few years with 66% of small businesses reporting having financial difficulties and 43% saying that paying operating expenditures is the biggest problem. Apart from these, there are many diverse reasons why businesses seek funds.

There are different funding strategies with each funding option having different availability, conditions, terms, funding amounts, and eligibility requirements in addition to the fact that every firm has particular funding needs.

To select the best option, you should know the lender’s lending terms, and eligibility requirements, in addition to the loan terms. Here are a few platforms to get funds for your business:

1.    Kickstarter

The most well-known crowdfunding platform is Kickstarter, which has raised $1.7 billion and financed 85,000 projects since its launch in 2009.

Like the majority of crowdfunding websites, company owners set up a profile page that provides an overview of their operation and a fundraising target. Donors are promised a benefit, such as the opportunity to test out a new product first.

However, on this platform, you must reach your fundraising target to keep the money. Your contributors get their money back if you don’t meet your goals.

Also, if you succeed in reaching your goal, Kickstarter charges a fee of 5%. You should visit the website to evaluate your business because anything from creative endeavors to business enterprises is actively competing for funding.

2. Upstart

Younger entrepreneurs may not have proven themselves in terms of financial track records or solid credit history.  Upstart makes the process of accessing funding possible for budding entrepreneurs.

It does so using an underwriting model that reviews and evaluates based on factors like education level, employment history, place of residence, etc. using AI and unconventional data.

This indicates that their standards are much less stringent and that the only criteria for inclusion are promise and prospects.

Accessing funds through Upstart can be a low-risk way to consolidate moderate-interest debt or finance business expansions, even though the loans themselves have a $50,000 maximum.

3. Nav’s Small Business Grant

Nav is an online platform that uses credit and finance data to link small business owners with the finest available business financing alternatives.

Nav awards three grants each quarter, with the top grant recipient earning $10,000.

This will help struggling small businesses get some relief and, perhaps, give them the boost they need to advance to the next stage of prosperity.

It’s simple to apply. You only need to give a brief description of your company, the difficulties you are experiencing, and how the grant money would help you go on the correct path.

4. OnDeck

OnDeck grants loans depending on a combination of valuation metrics that reveal the state of your company’s financial health.

Ondeck considers your company’s yearly earnings to assess eligibility and help shape the loan and payments to meet your needs.

Depending on your situation, they also provide you the option to apply for a loan or a line of credit, so you may be able to continue with one lender for all of your financial requirements.

5. SBA loans

Owners of small businesses in the United States frequently consider SBA loans as their first option when looking for financing, and they have every right to do so. If you meet the requirements, this option could be an excellent choice.

For more information on the SBA Loan program and to determine your eligibility, you can read more about SBA loans to learn how to increase your chances of getting accepted if you apply.

6. Prosper

A popular peer-to-peer lending platform is Prosper. With $3 billion in loans made, it is well known in the industry.

You receive an interest rate using this resource based on an assessment. To let potential investors know who you are and why you need the money, you need to create a loan listing.

Once an investor agrees to fund your loan, you will get the money and draft a payment schedule based on terms and conditions.

7. Government Small Business Grants

The grants offered by the American government may be the most generally known. However, as these are frequently industry-specific, you’ll need to research the options for your particular business kind.

On its website, the SBA provides a handy section where you can carry out research to determine which could be ideal for you.

8. Bank loans

One of the best options for business owners looking for capital may be bank loans. They frequently set aside funds for small firms and startups. However, they have tighter lending requirements depending on the lender.

When applying for bank loans, take your time to go around and look for lenders where you may speak with a live person.

This makes sure you’re completing all the required paperwork and gives you advice on how to raise your chances of getting authorized.

In general, you’ll have more success speaking with a live person in a neighborhood bank or credit union, so do your homework and speak with many organizations to discover the best fit.

9. Indiegogo

Indiegogo is an additional alternative for crowdfunding. You create a profile, share your narrative, establish a fundraising goal, and request donations much like on other crowdfunding websites.

However, if you don’t meet your target, Indiegogo keeps 9% of your revenue and 4% if you do.

10. National Association for the Self-Employed Grants

The National Association for the Self-Employed has awarded grants totaling $650,000 since 2006.

The maximum award is $4,000, and recipients are required to utilize it for facility expansion, personnel employment, marketing, and advertising.

To apply, you must be an association member.

11. Lendio

Lendio simply serves as a ‘middleman’ that connects you to lenders. They connect individuals with the best alternative for their needs by utilizing a network of over 300 lenders.

Instead of analyzing each fintech company individually and submitting numerous applications, you may simply review hundreds at once and submit an application using a straightforward form.

The only disadvantage of hiring a middleman like Lendio is that sometimes it can take longer for your money to reach you. However, Lendio is a good option to consider if you’re searching for long-term funding that also offers top-notch customer support.

12. Small Business Lending Fund

The Small Business Lending Fund (SBLF), created by the Small Business Jobs Act of 2010 (the Act), is a special fund created to finance eligible financial institutions and community development loan funds (CDLFs) to promote small business lending.

The SBLF’s mission is to support small companies and Main Street banks in their cooperative efforts to build the economy, generate jobs, and strengthen local communities all over the country.

This US-based government fund gives out loans to small businesses through particular lenders in each state.

This program’s main advantage is that it’s intended to boost economic development. As such, you can make a move to get funds to start your business from them.

Final Thoughts

Entrepreneurs wear many hats, however, one of the most prevalent causes of anxiety is dealing with finances.

Lack of enough money to keep a business running is one of the main causes of small business failure.

As such it is imperative to learn about business financing so that you can easily prevent this problem from occurring when beginning a new business/side hustle.  And even if the problem arises in the future, you’d be prepared to handle it.

To avoid having to skimp on operations or marketing if you lack the resources to directly fund the firm, you may want to think about raising financing.

Being able to cater to the needs of your business and employees as and when due is the joy and perspiration of every business owner.