Small businesses have many opportunities for funding. These multi-million dollar deals seem like an amazing opportunity, but in reality, the strings attached to this type of equity financing may cost you in the long run. Giving up part of your equity may mean giving up most of the control of your company. This type of opportunity isn’t the only option you have at your disposal. Non-dilutive funding is a much better option.
What Is the Definition of Non-Dilutive Funding?
Non-diluted funding provides you with the money your business needs without forcing you to give up any control over how its managed. Loans, tax credits, grants, and crowdfunding all fall under the heading of non-dilutive funding. You get the money you need and remain in full control of your business and its day-to-day operations. You will still be required to provide data and other information to the entity that awarded your business the working capital.
Who Offers Non-Dilutive Funding?
There are many places that offer non-diluted capital funding to small business owners who want to maintain total control of their companies. The following sources are excellent choices if you are looking for working capital with few strings attached.
- SBA – The Small Business Administration
- SBIR – The Small Business Innovation Research program
- Economic Development Agency in your state
- Government assistance programs
- Private donors
- Grants and loans
Crowdfunding is also a viable option.
The Benefits of Non-Dilutive Funding?
Non dilutive funding offers several benefits that small business owners can count on. One of the primary benefits is that you maintain full control of your business. In addition to the funds being tax-deductible, the funding terms are also more favorable. Grants, tax credits, and government vouchers do not have to be repaid. You get all of the benefits of the capital without compromising your financial future or handing control over to outside investors.
Is Non Dilutive Funding Right for Your Business?
No matter what type of funding you choose, there will be pros and cons. It’s up to you to know your business and be confident in your ability to manage it effectively. For some, bringing in a more qualified investor to help manage the business may be the best choice. Others may have everything they need to move their business forward once they have the funds they need to keep their business growing. With so many funding options you have at your disposal, you need to look over each one to find out which one is the best fit for your business. Non-dilutive is one of the most effective forms of financing for small businesses. Knowing what options you have available and having a financial plan in place will give you an opportunity to find the money you need without giving control to someone else. With this type of funding, you are able to chart your own path and build your business to your specifications. It’s important that you know your business, its needs, and also know your own management abilities. With that information, you can make an informed decision.
