How to Acquire Additional Funding for Your Digital Marketing Agency?

VillageConnectPH.com | Starting any company from scratch (digital marketing agency included) is a difficult task at best. You will experience stress, your boundaries will be pushed, but this is also an opportunity to see what you’re made of.

However, this adventure will certainly strain your financial resources and suck away your savings. Taking a loan from family and friends isn’t the best way to stay friends with them, and isn’t it a challenge to explain what ‘digital marketing’ is to anyone over 30? The only way to have a normal relationship with them and succeed in your undertaking is to raise funds elsewhere.

• Line of credit

A revolving credit, or better known as a line of credit, is a predetermined amount of standing credit from which you may draw upon at any time. In essence, you get to borrow against the repaid amount at any given time without the need to reapply for debts over and over again.

Their interest rates seem to be higher but this can be a less expensive option when compared to a credit card. With a revolving credit for businesses, you just need to pay interest on the amount you used instead of the maximum amount that is approved.

• Bank loans

Because of their long tradition in this field, banks have been a preferred source of additional funding for many entrepreneurs. In other words, they are reliable, so if you choose this kind of conventional debt, you will have two options at your disposal: 

• Working capital loan
• Funding

A working capital debt doesn’t require an assessment of your business plans, like a funding option does, but it does cover the whole cycle of operations that produce income. It is recommended that you consult with other small business owners and visit a couple of banks so that you can with ease that you went with the least expensive option out there.

• Unsecured loans

Marketing is a field of fast turnaround both in terms of changes and time for completing a task. If you cannot acquire banks loans or are over past your maximum line of credit, your best bet may be unsecured loans. The reason for this is that no security business loans have a quick and easy application process – a vital factor in marketing. They typically range from $5,000 to $100,000 and can be settled in the same business day. Moreover, the duration to repay them is short-term, ranging from 3 to 24 months, if you’re looking for that kind of repayment. 

• Crowdfunding

You can take advantage of the resources available online. For example, use crowdfunding websites to find capital. While most of the populace believe that Kickstarter is the only platform for this, there are some alternative websites you can consider as well:

• Fundable
• CircleUp
• CrowdFunder

All of them operate in more or less the same way. Some place you in a pool of professional investors, while others let you raise money from the average Joe. If your project gains traction, you can raise a lot of capital.

• Bootstrapping

In essence, bootstrapping is financing your digital agency with your own capital. Unless you receive a bank loan or are excellent with crowdfunding, self-funding will help you gain traction in the market gradually. Bootstrapping comes with its own set of benefits:

• You won’t need to pay any interest on loaned cash.
• You don’t have to give up any part of your digital marketing agency.
• There is no investor with whom you have to share profits.

There are many different ways to raise investments for your digital marketing agency at any stage. You can either choose some of these methods or a combination thereof. Ensure that whichever option you select, you get a nice funding deal for your agency.