By October 23, 2018 No Comments

Whether you are looking for start-up funding, expanding funding or sticking to funding during tough times, finding financing in any economic environment can be challenging. Getting funding can be difficult. To help you find the money you need, here is a guide to 7 financing techniques and what you should know when pursuing them.


While it may be relatively easy to self-finance your startup, it has one big drawback: if the venture is not successful, then you are in trouble. Still, it’s an attractive option and comes with lower risks. Getting the money you need from your own reservescan be done in a variety of ways.

Using your own piggy bank is the easiest way to finance small businesses. Whether it’s from your checking account, family inheritance, or sitting in an old money market account, using your own cash is not only popular, but it also demonstrates the business owner’s commitment to other potential investors and ultimately helps. Earn additional funds from third parties.

2.Selling Personal Assets

Maybe you own real estate, stocks, bonds or valuable family heirlooms that you are willing to sell to raise funds to fund your business. Selling assets for cash is a time-tested way to raise money, but selling certain assets (especially real estate and stocks) can have tax implications. Be sure to take this into account before you take the risk; otherwise, you may find yourself facing an unexpected capital gains tax from the IRS.

3.Credit Card and Personal Loans

Whilst it’s never advisable to take on personal debt such as credit cards and personal loans to buy items that go down in value, credit cards can provide a quick and easy way to fund the purchase of items for business. The difference is that a business should produce income and, perhaps, grow in value. Using borrowed money to buy an item/start a business that will increase in value over time, can be a smart decision.

But it’s important to remember that credit cards still have high interest rates (sometimes 24% pa or more!), and card balances that are not repaid in full by the due date will have interest costs applied (and backdated to the start of the billing period).

It may be difficult to keep up with payments before your business generates enough income to begin paying off debts. If you plan to use a credit card to fund your small business startup, it can be advantageous to use a card which provides a reward or cash back program for commercial purchases. Also, if you are planning a short-term loan (18 months or less), look for a credit card with a lower Introductory Annual Rate (APR) or 0%.

Remember, using a credit card to fund your business is a serious risk business. By repaying only the minimum amount each month you can create a personal debt trap that may never leave you. However, the responsible use of credit cards can give your business the startup it needs, when used correctly.




Crowdfunding sites like can be an interesting and effective way to raise money for relatively low-cost creative projects. You will set a goal, which is how much you want to raise over a period of time, for example, $1,500 for 40 days. Then, your friends, family and strangers use the site to commit money. Since its launch last year, Kickstarter has funded about 1,000 projects, from rock albums to documentaries. But remember, this is not a long-term funding. Instead, it should promote demand and support for a single, one-off idea. Often, the project creator will provide incentives, for example, if you give the writer $15, you will get a book in return. Proponents do not have a long-term return on investment, or even the ability to write off contributions for tax purposes. Still, this still does not prevent nearly 100,000 people from committing to the Kickstarter project.

5.Angel Investors

If you can’t get enough cash from your bank or your own assets and you don’t have a wealthy uncle, you can always find a wealthy non-relative. Some wealthy people like to invest in startups – usually in exchange for equity in new business. These investors are known as angel investors. Often, angel investors have succeeded in specific industries and are looking for new opportunities in the same industry.

Angel Investors can not only finance your business, but some people are willing to provide guidance based on their own experience. They can also use existing contacts in the industry to open the door to your business.

So how do you find these Angels? It can do some research. Many Angel Investors prefer to keep a low profile and can only be identified by asking other business owners or financial advisers. Other Angels joined the network, making it easier for potential startups to find them



6.Peer-to-Peer Loans

Simply put, a point-to-point (usually expressed as P2P) loan means borrowing money without going through a traditional bank or investment company. Under P2P, the borrower issues a loan request on the P2P platform – such as Lending Club or Prosper – to indicate the amount required and the reason for the loan. The potential investor reviews the request and agrees to lend the borrower various amounts until the required amount is reached. Once the loan is funded, the borrower receives the total amount of the loan, then pays the loan to the platform through a fixed monthly payment, and then repays the investor based on each loaned amount.


If you have a good idea for a business, but need a lot of help (including funding and guidance) to get up and running, a business incubator might be the best choice – if you can combine your business into one.

Business incubators, as their name implies, are an organization dedicated to providing services and support to start-up companies. Business incubators are run by venture capital firms, government agencies and universities with the goal of nurturing new businesses in the initial stages by providing marketing, networking, infrastructure and financing assistance.

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Disclaimer: This information provided is general in nature. It is based on the knowledge and experiences of the author and not intended to be taken as financial advice. It does not take into account the objectives, financial situation or needs of you or any other particular person. You need to consider your financial situation and needs before making any decisions based on the information. You may have to modify the information and do further research, for it to suit your personal financial situation. Therefore, before acting on the information, it is recommended that you consider its appropriateness to your circumstances or consult a financial adviser, tax advisers or legal professional to assist you in doing this.

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