Solopreneurs are a unique group of business owners who generate revenue on their own. While many solopreneurs are Millennials, the demographics also include Gen-Xers, as well a Baby Boomers who are tired of the corporate churn and want to take control of their livelihoods and finances while doing something they enjoy. Some produce items for Etsy and eBay, while others run AirBNBs, rent out apartments, own podcast networks, or have “side hustled” their way from their regular jobs to financial independence. Yet every business, even one-person operations, needs adequate financing to launch, thrive, and grow.

Direct Vs. Indirect Financing

Depending on the size of the business, a solopreneur may try to secure funding through direct financing. Direct financing takes many forms, such as borrowing friends and family, or selling off equity in the business through a financial market. In all cases, the funding is coming directly out of the pocket of a person or entity, so they have a stake in the business. Securing financing from friends and family to be paid at some future date can cause relationships to sour or force solopreneurs to take on a partner who wants to control the operation. In the case of equity or seed investors, solopreneurs may find that the funding entity wants to place too much guidance on the business and steer it in a direction that infringes upon the entire point of running a one-person operation.

Indirect financing creates a buffer between the lender and the solopreneur by introducing a mediary. The mediary has relationships with lenders and can provide a wide range of solutions depending on the needs of the borrower. Solopreneurs use indirect financing for commercial real estate, equipment, working capital, and more. Indirect financing can be tailored to the needs of solopreneurs while still giving them the control they desire.

Turning Your Dream into a Successful Business

Web Finance Direct offers a wide range of indirect financing services. We have partnerships with a diverse network of lenders who provide loans and other forms of financing to fit the needs of solopreneurs of all types. Contact Web Finance Direct today to explore your financing options and turn your dream business into a thriving reality.