Running a small business can involve many challenges. Entrepreneurs are often faced with trying to keep their business plans on track, while dealing with unexpected obstacles along the way. However, one thing that doesn’t have to be an obstacle is getting funding for your small business.

Whether you’re working with an online financier, a traditional bank, or a credit union, there are a few steps you can take to ensure you qualify for funding, and to get that funding as quickly as possible. Financing providers have certain qualifications and practices they look for out of small business owners, and learning how to make yourself appealing for funding opportunities will set you up for success.

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Let’s look at some tips to help get your small business funded.

1. Determine the amount of funding you need

The most basic and preliminary step is figuring out how much funding you need. Financiers will expect you to apply for a specific amount, and that isn’t something you should just make up in the moment. Small business loans and financing comes in various shapes and sizes (more on that in a moment), and you’ll want to be sure that you’re applying for the one that can actually provide the amount of funding you need.

Also consider in this step what your goal is with the money being funded. Sometimes businesses are looking to just get by. Other times businesses are looking to expand rapidly. The amount of money you ask for will greatly depend on your goals with the money you’re hoping to receive.

2. Determine what kind of funding you want

There are many different types of funding that small businesses can receive. For example, even raising money from friends and family would count as receiving funding. When you’re first getting started, cash from your acquaintances may suffice, but as you grow, there’s a strong probability that you’ll need something more formal from a business funding provider.

For example, SBA loans are low cost, but come with lengthy applications and stringent qualifications. Lines of Credit function more like a credit card than a loan, and real estate loans can only be used for, well, real estate.

As long as you’re aware of the different eligibility requirements for the different financing you’re considering, you’re well on your way to making a choice.

Consider the different types of funding options available to you, then match what you need with what’s available. That will help get your small business funded in the way that’s most appropriate for you.

3. Establish and build relationships

Receiving funding is not just about a bank or a business financing company shelling out some money to you. While there are plenty of options that involve little back and forth with the investor, it’s still important to put your best foot forward when it comes to financiers.

Receiving funding from a provider is no small task. They are giving you cash expecting a return on their money, and this requires trust. Trust in your business, yes, but also trust in you as the business owner.

As a small business owner, you mean more to your company than the CEO of a Fortune 500 firm. You’re the face of your business and the way you show up when representing your business will go a long way toward making potential financing providers feel comfortable.

Consider putting yourself out there, networking, and doing the work to meet and work with potential funders. This will help you build relationships that will come in handy when it comes time to request funding.

4. Determine what makes your business unique

What market value do you provide to investors? Whether it’s a bank, a business financing company, or even friends and family, you’re going to need to be able to show that you have a company that’s worth something. And this means proving your value in the marketplace.

It’s essential that you understand your business better than anyone else does. Part of that means analyzing your business plans and knowing your customers, but it also means figuring out where you fit in the larger marketplace. Analyzing competitors and seeing where you rank is important and figuring out what you’re doing differently (and better) than them is key.

Being able to talk decisively about your competitive advantage is going to set you apart in the eyes of potential investors. They want to know why they should invest in you, rather than in some other company. So, make sure you’re clear.

5. Become an Expert in the Options

While these tips (and the Biz2Credit blog) can set you up for success, you need to put in the work to determine how to get funded as well. That means looking into everything from SBA to federal grants to small business grants and more. There are so many different types of business financing, and while this blog will help you get started, it’s up to you to take it from here.

We highly recommend reading through our knowledge center and reaching out to us if you have any questions. Entrepreneurship involves plenty of research and plenty of learning, and it’s up to you to take the right steps for your company.

While this may seem like a daunting task, you can take comfort in the fact that you’re not alone, that tens of thousands of other small business owners have walked this path before you, and even the most successful companies started out as nothing more than an idea in someone’s mind.

Remember, financiers want to help you and your small business grow. The reason they’re investing in you is because they want to see you succeed—otherwise they won’t get a return on their money! So take advantage of what they have to offer, and make your business the best that it can be.

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