Getting Things Running: How to Get Funding for Small Business Startup?

Getting funding for small business startup expenses is one of the larger challenges for people wanting to make their dreams a reality. One of the biggest issues is not having access to business loans. Before most people can qualify for business funding, they must have established financial records.

How does a startup get money for their business? They must be creative and have access to non-traditional lenders. By non-traditional, we’re saying, don’t count on a big bank or a loan from the Small Business Administration.

Are you ready to step out and start a business? Keep reading to learn more about small business funding options.

Funding for Small Business Startup Costs Using Your Savings

As soon as you start thinking about starting a business, it is wise to start saving. Open an account with limited access and direct a portion of your current income towards it. Bypass the big banking institutions and open the account with a community bank.

Building a relationship with small financial institutions has benefits down the road.

If you already have money set aside and a business opportunity comes about, consider pulling from those funds. This could be money in a retirement plan or a regular savings account. 

For the college-bound student looking into entrepreneurship, your parents may have money saved for you. See if they are willing to invest in your start-up.

Access Cash from a Settlement of Lottery Winnings

Do you have a court-ordered settlement coming to you? Or perhaps you won the lottery. It could be you have money coming to you, but the payout is delayed or structured to pay over a set period of time. 

In these instances, there are companies willing to help you borrow against the money coming to you. Learn more about Rightway Funding, a company helping people access money when they need it the most.

Ask Friends and Family to Become an Investor

A good business person knows they need a business plan if they want to become successful. Turn your business plan into a sales pitch to market your idea to potential investors.

There are hard money lenders looking to invest in small businesses, especially in the construction and property investment sectors. Then you have family and friends they would love to see you pursue your dream of starting a business.

Approach them the same way you would a bank. Be professional and upfront about the amount of business funding you need. Have obtainable terms and conditions for repayment.

Most important, honor the agreement because you may need them to reinvest when it’s time to expand.

Get the Money You Need

Don’t let the lack of funding for small business startup costs stop you from moving forward with your plans. The money is out there, you just need to know how to get it.

Do you need additional tips to get your business up and running, and turning a profit? We have you covered. Bookmark our site, so you can stay abreast of what’s trending for small businesses.