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There are many methods to raise capital for your business. You can use conventional methods of which you are probably aware, and there are more creative methods to get the money you need.
I will outline some conventional and creative ways to raise capital.
Since this is only an outline, you can use your creativity to expand on these ideas.
Banks
If you have a good relationship with your banker, it is easier to get a loan. A banker, who knows and trusts you, can make the loan process a lot smoother than a banker, who does not know you. I am not saying if you have a good relationship with your banker, he will automatically approve your loan.
If your business plan looks good, then your banker can cut through a lot of red tape. If you don't have a relationship with your banker, then you should work on having a sincere relationship. You might need him in the future.
Have Your Business Plan Ready
You should have a business plan ready, when going to apply for a loan. Your business plan can be to the cent, outlining everything from A-Z.
Or it can be simple, outlining your plan, method and period of payback, plus you'll need to take financial statements and any collateral you have. A smaller loan allows your banker to approve it from his branch.
A large loan, as opposed to a small one, will require a detailed business plan, plus your banker will probably have to send it to his head office for approval. You can consult with your banker and accountant to determine the best way to approach the loan process.
Credit Cards
Credit cards are a method sometimes overlooked for short-term loans. The interest is usually higher, and for this reason they should be used only for a short period of time.
If your credit card has not reached its limit, you may want to ask for a credit increase. If your card is close to the limit, pay off most of it, then apply for a credit increase.
Assets
Assets that are not being used, not appreciating or being saved for a rainy day can be converted into cash, which can be used more wisely. You just have to weigh the pros and cons. You can also use assets as collateral for a loan.
Partners
You can raise money by adding partners for your venture. You don't have to give away your company, because you are acquiring partners.
You can offer a partnership in only one part of the company, or a partnership in only one project. You could also look for a silent partner, where he supplies the funding, makes money from the profits, but has no authority.
Another idea is that you could offer a partnership for a limited time.
Sales You can raise funds by creating a sale to liquidate current and old stock. Keep in mind: you may have to restock some of your items. You could take a larger price cut for items that you don't want to restock.
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