What is Capital Funding, and Why is it Important for Businesses?
Capital funding is money lent to businesses by third parties to fund their daily operations. It is usually debt in the form of bonds, equity of stocks, or corporate loans.
More often than not, capital funding is a necessary staple for business success, especially for new businesses looking for additional cash to upscale. It is a viable solution for purchasing lands, machinery, or human resources that businesses need but can not afford with their current cash flow.
However, some third-party companies exist solely to provide capital funding for needy businesses. Top of the list of these companies is VIP Capital Funding. VIP Capital Funding offers loans and other financing options for small and medium-sized businesses looking to grow and thrive in their industry.
Here, we will cover the problems you may encounter with traditional funding options and how VIP Capital Funding can help you surmount those problems.
The Problem with Traditional Funding Options
For decades, people have resorted to growing their businesses using traditional funding options based on the stage of their business, their business strategy, and their track record as an entrepreneur. However, some of these options come with limitations—limitations we would rather do without in modern times.
- Bank loans: Although many come with a low-interest rate and a predictable payback schedule, they usually have a lengthy application process and can be very difficult to obtain. Moreover, making regular payments with interest can be more harmful than beneficial to a small business or a startup, especially at that stage where when profit is not stable.
- Personal funding: It is unarguably true that self-funding your business gives you complete control over its affairs. However, the business grows at a relatively slow pace compared to businesses with additional funding. Besides, many business owners/founders lack the personal capital to fund their business.
- Family and friends: This is the most common funding option as there is a personal relationship and trust. However, over time the business tends to outgrow the family’s financial capacity. Other times, relationships are ruined due to financial indulgence.
- Crowdfunding: Crowdfunding for your business solely relies on your marketing skills. Moreover, equity crowdfunding involves giving up some shares in your business and your role as the sole decision-maker of your business. So, is it worth it?
How VIP Capital Funding Can Help
VIP Capital Funding prioritizes you and the success of your business, regardless of what stage you are in your business growth, accomplishment, or performance history. With $50k-$15MM in easy business loans to increase your cash flow, our goal is to financially walk you through your milestones and help you achieve your business goals. VIP Capital Funding provides;
- Working capital for your small business
- Small business grants and bridge loans
- Debt consolidation
Compared to traditional funding options, VIP Capital Funding assures a fast and seamless application process, early prepayment discounts, and a flexible payback structure. We also help you simplify your finances and improve your cash flow. Grow With Us Today!