Across the Greater Toronto Area, business is booming. Whether you want to get into this city’s world-class restaurant scene or you’re trying to launch an exciting new tech company, Toronto is a great place to set up a business — the only challenge is finding the funding to get started.
If you are trying to get a venture funded, you probably know that small business loans in Toronto can be hard to get from the major banks. So how can you raise the capital to make your dream a reality?
Here are three ways to raise money for your Toronto start-up that don’t require you to get a bank loan so you can secure the cash to launch your company as soon as possible.
Get Help From Family and Friends
If you’re a young person just launching your first business venture, one of the first places you should turn to is your immediate circle of friends and family — the people who already have a vested interest in seeing you succeed.
While raising business capital through friends and family isn’t always easy (and can require a great deal of sensitivity and emotional intelligence), it has been the main source of funding for thousands of successful businesses.
Leverage Your Social Networks
Social media apps like Twitter, Facebook, and Instagram have made it easier than ever for entrepreneurs to connect to potential markets. And if you think you have an idea that would be popular among your followers, social media can be a great avenue for crowdfunding.
Companies like Kickstarter and Patreon are designed around the premise that people are often willing to pay money up front to help their favourite brands and content creators develop new products and services, so leveraging your broader social networks as a source for investment can be a powerful fundraising tool.
Work With an Alternative Funding Company
Not every entrepreneur is going to be able to raise the capital they need by relying on their personal connections of social media following, of course. So what other alternatives exist?
Fortunately, there are ways to secure funding agreements with financial institutions without going to a big bank. With more and more companies trying to raise money and a banking industry that is increasingly reluctant to work with companies that lack a proven track record, an alternative funding industry has developed to meet the needs of entrepreneurs and other small business owners.
Through funding instruments like Merchant Capital Advances, unsecured business financing, commercial financing, and expansion funding, alternative funders have developed a number of different products designed to help businesspeople looking to fund their first venture.
While alternative funding might not be ideal for all start-ups, it is worth getting in touch with Toronto-based alternative funders who might be able to give you the financial boost you need.
As the fastest growing city in North America, Toronto is becoming a highly desirable place to do business. Succeeding in such a dynamic city can unlock huge opportunities for your brand, so if you have an idea that you think could make money, start the process of getting funded today.
