Looking for financing for your new business venture? Maybe you even went on the Dragons Den TV show but left without funds? If you’ve been to Dragons Den and been turned down for funding, you may be wondering why. What did the dragons tell you? You should not ignore their advice, if they said your business was a stupid idea and would never make any money, believe them and move on. Many people leave the lair thinking they know better and go on with their dream, only to spend years wasting their time in a business that will never succeed. However, if the dragons liked the idea but just didn’t think it was investable because the return on their investment wouldn’t be worth it, you still need to keep looking for funding and keep your entrepreneurial dream alive.

Financing a business is a very important part of starting a new business. There are many options open to you; you just need to know what to look for. Most people go to their bank first and try to get a bank loan. Bank loans may seem attractive as you don’t have to sacrifice any business property; however, your interest rates may be high and you may spend a lot of time paying off the debt. Also, with a bank loan you will have to pay it back even if the business fails.

Another option available to you is equity financing, which is where you sell the partial property for cash. This can be in the form of a business angel or a venture capitalist. With business angels you get the added benefit of advice and support from your investor. Angel investors tend to be very successful in their own right and have businesses similar to yours. They often save struggling businesses from ruin and get them back on the right track.

Venture capital investors are another type of debt financing. Sometimes these types of investors become partners within the business and use their skill and experience to turn the business around or help it get off the ground. Most of them take an active role, but some simply provide the funds and let you run the business yourself. If the business is successful, they typically get a higher return on their investment than, say, interest rates on savings accounts. This is why venture capitalists look for businesses to invest their money in. Equity financing is much more expensive if your business is successful, but much less if it fails.

Business grants are another option available to you and could be just the type of funding you need. Grants are sums of money that are awarded to businesses and do not need to be repaid. However, grants usually come with terms and conditions that must be met to ensure that you do not have to repay the grant. The problem with grants is that they are hard to come by. They are provided by central, regional and local government, the European Union and a host of other national and local bodies. Most grants are awarded to limited partnerships, partnerships, and sole traders. Unfortunately, the location of your business will be crucial to obtaining a grant.

Finding financing couldn’t be easier with the Internet. There are many business angels that offer the opportunity to meet with investors. Some online sites have member areas where those seeking financing can post their business financing needs. Investors can also become a member and browse through all the investment opportunities and decide with whom and in which company they want to invest their money.