Capitalize on Your Idea: How to Finance a Project Without a Bank Loan
Monday, December 23, 2019, 6:00 AM | Leave Comment
If you have a great idea for an important project at home or in your community but don’t want to take out a bank loan, consider other funding sources to get the job done.
There are plenty of other ways to raise money for your worthwhile ideas that may be quicker and save you money on loan interest.
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Borrow from Yourself
Consider tapping into your savings account, investment funds, or retirement money to pay for the project. Use the account with the current lowest interest rate. If your project takes off, you can repay the interest to your account. The interest you pay back to your own account is likely to be less than interest on a bank loan. Never borrow more than you can afford to lose, but hopefully the money will soon be returned.
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Earn Additional Income
A second job, even a temporary or seasonal one, may help you earn the funds needed to launch your project. If you already have a full-time job, you may be able to get a position for a few hours a week that will pay enough to cover your costs. Common jobs temporary jobs include farm work, holiday sales, and service jobs like dog walking or house cleaning. You might be able to sell your craft projects made from woodworking, crocheting, or graphic design. After the project is funded, you can give up the extra job if you no longer need it.
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Sell Unneeded Valuables
Look around the house and garage to see if you can sell things you no longer need or want. Children’s toys, bicycles or skates, unused furniture, and widely-sought tools can often be sold online or by arranging a garage sale to earn quick cash. Vintage clothing, rare books, and popular cookware are often bought by eager customers. Rummage through your attic and basement as well as other areas where you have stored unused items to find those that might be easy to sell.
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Sign Up for Crowdfunding
Crowdfunding can be highly effective in raising money for an innovative project or a good cause. Sign up online and get started. Depending on the platform guidelines, you may be able to add photos and background music as well as a brief video describing your plan. Some of the best practices crowdfunding sources have recommendations and tips for sharing your vision with those who may be willing to donate to it.
A new project can be a worthwhile investment, but it may still be a difficult one to make. With several funding sources to consider, take your pick and organize your sales pitch if needed. Your needed funding may be closer than you think.
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