Startup Businesses Financing Options

Many people have ideas of starting business as a way of increasing their income. A common challenge among many has been raising startup capital. We have different startup businesses financing options you can consider.


e43r5gty5g4Self-financing for a start-up is relatively easy. There are different options you can consider to finance your business without involving third parties. The first one is tapping your personal savings. It shows how much committed you are to the business.

You can also consider selling some personal assets. If you own some real estate, stocks, bonds, cars, or other valuable goods you can sell them to raise capital.

If you have a credit card, you can still use it to get startup capital. Although it acts like a loan, it is easy cash compared to the normal application of a loan in the bank.


The internet offers you a big opportunity to raise capital. There are websites and platforms in the media where you express your business ideas and get them funded if they are found viable.

You can also print t-shirts and sell them at higher prices to raises capital from the crowd.

Bank loan

Getting a bank loan is the widely adopted method of raising startup capital. There are different types of loans that banks offer people who want to venture into business. You can consider taking a secured loan by probably giving the bank your logbook. You can also get a loan against your pay slip. For the first loan, it can be a bit challenging, but when you develop a good relationship with your bank they are likely to finance you more in the future.f456yt43f

Retirement cash

Many people prefer starting businesses after they retire. It is always a nice idea. Therefore, you can raise capital for your business by withdrawing your retirement package. You can do this before you retire although you will incur steep penalties for early withdrawals.

Government grants

Government grants in most cases come through Small Business Administration (SBA) loans. It is a way of the government to give small businesses startup capital. You need to make the application and explain why you need the capital.

Getting finance to start your business will not be easy unless you are already a millionaire. It will require serious planning and effort. You have to weigh the benefits and shortcomings of the funding options you have so that you can go for the less costly one.