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The most recent U.S. Census figures show that Orlando is home to over 80,000 businesses. If you’re an entrepreneur trying to push your business to the next level, you may need to advertise, buy products, or get the latest equipment, depending on your niche. All this costs money that may not be available through savings and loans from family or friends.

If you’re short on cash and can’t find space in your budget to accommodate those ideas, financing might be your best option for powering through and achieving the next stage in your growth. Below, we have compiled the best financial resources to make this process easier for entrepreneurs in Orlando.

Business Loans

Entrepreneurs often use business loans to fund their businesses. These loans are obtained from financial institutions such as banks or credit unions, and the borrowed sum is paid back with a predetermined interest rate over a specified period.

Using a business loan to start up or grow a small business can generally lead to positive returns that outweigh the costs. However, these loans are not guaranteed. In practice, getting a loan needs three things: a solid business plan, a decent to good credit score, and sometimes a business asset for collateral.

Bank loans usually have lower interest rates. However, due to stricter requirements, they can be harder to qualify for. Alternative funding sources, like online lenders, approve loans faster. But they often charge higher rates and fees.

Florida has many programs to help businesses in tough times. One well-regarded effort is the State Small Business Credit Initiative (SSBCI), managed by the state’s Department of Economic Opportunity (DEO). Another noteworthy scheme is the Florida Small Business Emergency Bridge Loan Program, which offers interest-free loans up to $50,000 for qualifying businesses seeking immediate relief.

Grants

Grants are government funds to support ideas and businesses that boost the economy. These monetary gifts often target specific fields and geographic locations.

Their non-repayable nature makes them appealing to founders seeking capital without debt. However, they are often fiercely contested and have strict rules on fund use that must be followed.

Securing one requires navigating an application process where hopeful recipients must demonstrate how their initiatives align with the objectives of the grant providers. A compelling narrative that resonates with these aims can significantly improve one’s chances.

Notable initiatives for businesses in Florida include The Amber Grant (for women entrepreneurs) and Orlando’s Business Assistance Program. Several local grants, such as America’s Seed Fund, Miami Mom, and Pop Small Business Grant, also exist to support and nurture small businesses.

Venture Capital

Venture capital (VC) is a type of private equity that invests in high-risk, early-stage companies. This funding is best for businesses past the “seed stage” and seeking Series A or B funding.

In exchange for funding, venture capitalists get company ownership and a say in its decisions. This financing is valuable for businesses that are too risky for traditional banks. It’s also for those needing more history to secure a loan.

The Florida Venture Capital Program provides equity investments and convertible debt to emerging companies with long-term growth potential. Similarly, Enterprise Florida, Inc. (EFI) is another economic development in the state that attracts outside venture capital investments.

Angels

Angel investors are experienced entrepreneurs with funds available from successful business ventures. They invest in new and emerging companies during the seed and early-growth stages. They typically invest around $50,000 and up to (or exceeding) $1,000,000 for larger deals.

Angeles Investments are often done solo. But, sometimes, they pool their resources and invest in groups. Angel investors invest in a wider range of sectors than venture capitalists. Ideally, when looking for an angel investor, locate one whose experience aligns with your business model and whose sector knowledge complements your plan.

Angel investors not only provide important financial backing; they also offer “smart capital,” meaning that they bring important networking opportunities and sector-specific knowledge to the table. Entrepreneurs can use platforms such as AngelList, f6s, and Crunchbase to show their work and see if an angel investor picks it up.

Initial public offering (IPO)

An IPO is a public company’s first offer of shares to the investing public. It is a company’s first step into public finance, and practically anyone who wants to invest in this company can do so. To do so, they must buy its shares at whatever value they carry.

Before going public through an IPO, a company is privately held, meaning it typically has a limited number of investors who can provide early-stage or growth capital.

For an IPO to be successful, a public stock offering demands that a company prove that it has been growing and will continue to grow for many more years. Growth can be measured in various ways, such as turnover, profit, the number of customers, or active users. While these metrics are important, a company must demonstrate transparency and inspire confidence. This is crucial because, during an IPO, the company needs to earn the general public’s trust. Investors purchasing shares want to feel assured that the value of those shares will increase over time.

Crowdfunding

Crowdfunding is a communal funding opportunity that typically occurs on online platforms. On one side of these platforms are entrepreneurs; on the other side, large groups of individuals invest small amounts of money in many ventures.

Crowdfunding is designed to appeal to a wide audience, many of whom are not professional investors. It’s best for simple, non-technical projects the public can easily understand. Hence, the term “crowd” funding. For instance, consumer products often perform well in crowdfunding campaigns because they are relatable and easy to grasp. Platforms most familiar to potential investors include Kickstarter and Indiegogo.

Alternative Investment Strategies

Entrepreneurs can consider other approaches as alternatives to the traditional funding methods above. These can include anything from peer-to-peer lending to forex trading . Private equity is another alternative, though less accessible for most entrepreneurs. Each strategy has its benefits and presents its own set of challenges. The most successful entrepreneurs evaluate these alternatives based on their risk profile and their business’s financial goals. Generally, these ventures require a longer time horizon to yield significant returns.

Find the Right Financial Resources for Your Business

Orlando entrepreneurs have access to various financial resources to grow their businesses. These options include loans, grants, venture capital, angel investors, IPOs, and crowdfunding.

Remember to maintain good financial practices and strong business credit to increase your chances of securing funding when needed.