High costs and expenses are something that holds you back when it comes to financing your business. You’re skeptical because of the fear of not achieving your goals, which is revenue maximization. It is true; some of the financing options have high-interest costs, making it hard for businesses to survive. 
But it doesn’t mean that you have to eliminate this option. You may explore such financing options, which suit the interests of your business. Believe it or not, but here are some financing techniques, ensuring revenue maximization. 

Partner Financing 

Operating business single-handedly, as a sole proprietor could be challenging. At some point, you need the support of a financial partner to go through the ups and downs of your business. Moreover, this partner would bring some capital essential for the company to grow. 
In return for some amount of capital, you’ll have to share a percentage of ownership with your partner. Let’s agree on the fact that it’s better than adding an interest expense to the long pile of expenses. It means partner financing ensures revenue maximization without adding on any costs. 
Remember, your partner would also have a share in profits and loss, business decisions, recruitment, and other operations. If you’re willing to share a small percentage of your ownership, then there’s nothing better than partner financing. On a brighter side, partnering with a well-reputed company would bring in strategic growth opportunities for your business.

Factoring Invoices 

You must be living in the 20th century if you’re unaware of the concept of factoring invoices. In this process, the investor would buy your customer invoices and pay you the money on the spot. Usually, the investor would pay you 80% of the invoice amount and charge the remaining amount as a commission from the invoices upon receiving the amount from the client.
Comparing the two, account receivables loan and invoice factoring can be tricky. The main difference between the two is the ownership of invoices. The factoring involves purchasing invoices at a discounted rate, whereas the bank requires you to pledge or assign the invoices as collateral for a loan.
It brings immediate finance without altering your expenses and ensuring revenue maximization. Companies like Fundbox and Fast Capital offer accounts receivable loans and lines of credit based on account receivable balances.

Angel Investors 

These individuals are nothing less than angels because they are specifically looking for small businesses that have the potential to grow. Angel investors are wealthy, experienced individuals who finance companies for nothing in return but just a small percentage of ownership. It could be as little as 1%.
These angels don’t ask for any interest payments or repayments for the money they have put into your business. It means getting finances from an angel investor won’t hinder your aim of revenue maximization because there are no costs or expenses. 
To your surprise, more than finance, these angels bring a lot of knowledge, ideas, and expertise into your business. You got to agree, along with the money you need experience and exposure to grow and survive in the market.

Grants by Government

You need to come out of your fantasy land if you believe that someone would lend your startup business a billion dollars. Governments offer small-grants to companies that are working by their interests. You don’t qualify for one if you’re operating a tobacco company.
These grants are more amazing than they sound because you receive funds for almost nothing in exchange. You won't have to repay this money, share a part of ownership in the business, or pay any interest to the government. If you wish to know more about these, you can check the small business administration loans.

Savings

It would be ludicrous to seek financing options if you’ve savings or assets available. Rather than digging yourself into debts, consider taking out some portion of your savings and utilizing it for good. No matter, the return on your savings is exceptionally high. It doesn’t make up for the interest payments your business would have to bear because of loans. 
Not just this, you’ll also face a lot of hurdles to maximize your revenue due to an increase in expenses. Trusting yourself with savings would eliminate the need for loans while ensuring revenue maximization. Remember, if you don’t put trust in your business, then no one else would.

Conclusion 

It all boils down to the point that financing allows your business to grow with more opportunities. Rather than making your business fall into a debt trap, one should focus on the right financing options that can help your business maximize revenue too.

Comfortskillz

Safe Milli

Safe Milli is a graduate of FPI, he studied office technology and management. He is a young enterpreur who loves to share his thoughts on latest technology trends, new business ideas and opportunities, how-tos related topics. You can chat with him on Facebook for enquiry.

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