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Business Counselor recommendations
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Isn’t it a great feeling to have an idea of a service or product and then materialize it? Don’t let financing your business project become a major barrier. In this article I would like to share with you some alternatives of financing for you to consider and to mention some HCC members who can assist you. Some alternatives may be more suitable to start your business and others more appropriate when you are in the growing phase. DIFFERENT TYPES OF FINANCING
MICROLOANS
These are installment loans of $50,000 or less. They typically come with very lowinterest rates and are more affordable than other startup loans. Some HCC members who offer this type of loans: International Institute, Justine Petersen and STL partnership (SBA intermediary lender). They may also provide additional resources for small businesses owners, including training, workshops, and mentorships.
LOANS
It gives you the opportunity to request the amount of capital you need based on your needs and that you must return with interest monthly. There are personal loans in which the borrower’s eligibility is based on their personal profile, and business loans where the business profile is considered. HCC has several banks members who offer special loans for entrepreneurs. BMO Harris Bank, Commerce Bank, and Midwest BankCentre just to name a few. GRANTS
Business grants can be found by checking the online offerings of every level of government (federal, state, local) and by seeking out directories of private grants and foundations. You should find a program that fits with your mission and your business. There are some local organizations that not only can award you a grant but also provide additional resources such as training and mentorship opportunities. You should also check programs sponsored by credit cards providers, big logistic companies, and national organizations for entrepreneurs. An HCC member who offers a grant is Arch Grants.
CROWDFUNDING
Crowdfunding is the process of raising money from many people to fund a project, a company, a cause. It could be used to fund a specific need in your company. It is usually done using an online platform. In some cases, the funders do so as an altruistic donation, while in other cases, they may get equity in the company who raised the money. For example, Kiva is a great Crowdfunding program, and it is managed by an HCC member, WePower.
ANGEL INVESTORS
It refers to individuals who have sufficient capital and who invest it in new companies, specifically in the early stages, in exchange for a shareholding. To find an angel investor usually it is by networking but there have been attempts to form networks of investors through hubs like AngelList and ACE-Net.
MARIA DE GREGORIO
Business Counselor, Hispanic Chamber of Commerce of Metropolitan St. Louis
VENTURE CAPITAL
A venture capital fund frequently disburses its funding over the course of several “rounds,” the first of which is called the seed round which is meant to get your business off the ground. Successive rounds, called series, may become available as your business grows. Different venture capital firms tend to specialize in specific phases. InvestMidwest is a venture capital forum to check out.
None of these different types of financing is perfect. They all have pros and cons; you should do some research and choose the one that meets your business needs. As always, you can contact me, and I am happy to assist you in your search efforts.
