10 Funding Options to Raise Startup Capital For Your Business

Funding a startup can be challenging because, without anything to show your lender, you have nothing to prove you will be able to pay the money back. Many people think going through your bank or lender is the only funding option to raise startup capital for your business, but that is not the case. There are many options open to you. Let’s take a look at the top 10.

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Self-Funding – You may have already thought about this as an option, or maybe not. You can use your savings if you have enough built up. Otherwise, you may be able to get a personal loan through a cash-out refinance mortgage, or you can put up some of your material items as collateral. The sky is the limit regarding how you can raise money for yourself.
Family and Friends – You have always been there when your family and friends needed you; now it is their turn. Hit them up for some money, whether a loan or as a partnership. You may be surprised how many people are willing to help you.
Angel Investing – Angel investors are willing to invest in startups in exchange for equity in the company’s ownership. They can also give you guidance because the startups they invest in will be industries they have experience in.
Crowdfunding – Various crowdfunding sites give you access to people interested in your startup. They will donate money to help with your funding requirements in return for free or discounted services or products that you will be offering.
Credit Cards – If you are not looking for substantial amounts of money, you can acquire some credit cards in your business name and use them to fund your startup. This is an excellent way to invest in supplies and materials if needed, and maybe even a month of building rent and insurance.
Traditional Loans – You cannot count out the fact that some lenders will be willing to give you business loans large enough to get your business started. They may require that you put up some of your personal items for collateral, but they may not. You will never know if you don’t try. Since you can use online platforms from start to finish, it is easier to get a loan than ever before.
Venture Capital – Many firms are willing to provide capital and advice and even give you leads for new customers. They are not easy to get, though, because they focus their efforts on companies with great growth potential and the ability to make big money.
Government Programs – Some government programs are designed to help young startups get up and running. You will have to research your local and regional government websites to see what is available. Don’t be afraid to apply for any of them that you find available; the most they can do is say no.
Pre-Selling or Service – This is an often overlooked way to raise some money, but it is a viable option for your funding. You can offer your service before your business is up and running, maybe at a discount until you get the financing you need. You can also sell your products until you get the cash you need. Either way works very well, but make sure you are still following your local laws.
Accelerator Funding – These groups will fund a small amount of money into startup companies in exchange for equity in ownership. These funders are usually focused on helping businesses that are being started that are eco-friendly or focused on clean energy solutions.

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These are the 10 most common ways for startups to fund their companies. Some of them may be difficult to get. Still, they are worth checking in to because you may be approaching them at the perfect time to get a ‘yes.’ The critical thing to remember is that there are many options available to you that do not include bank loans. Look around and talk to large, established companies in your industry to see if they are willing to help you get started. If you need money, take whatever legal road you must take to get it.