Find Business Start Up Funding

Obtaining the business start up funding you need to finance your dream of owning your own business is possible -- and without BIG bank loans! 

You just need to understand how and where to get the resources you need to fund business start up costs and operating expenses.  To be successful, you must also have a plan for setting aside reserve funding sources. 

Let Us Show You How

Our aim is to show you how to be empowered to have Start Up Business Success.  In that spirit, let’s review the many sources available to you for business start up funding. 

Some of these sources will include traditional small business start up loans, business start up grants -- and some non-traditional solutions for getting business start up money, such as Prosper loans.

Traditional Business Start Up Funding Sources

Personal Loans

You can apply for an unsecured  personal loan (usually up to $100,000) through a local bank if you have an excellent credit history and low debt ratio.  Another option is getting a loan through family members, business colleagues or friends. 

Virgin®  Money manages loans between family and friends which can provide you with a formal agreement to preserve these important relationships.  Find out more at www.VirginMoneyUS.com.

Small Business Start Up Loans

Commercial banks offer small business start up loans which are either secured on the owner’s personal property or assets.  Another option is to apply for one of the many SBA guaranteed small business loans. 

The US Small Business Administration operates as a loan guarantor, much like the federal student loan program.  It offers several small business start up loans, including the Basic 7 (a) Loan, the SBA Express and the Microloan.

To qualify for an SBA loan, you must apply through a commercial bank or finance company which participates in the program.  Please note, good personal credit and a sound business plan are required for serious consideration.

Small Business Start Up Grants

Federal business start up grants are available to select individuals and organizations involved in a project which benefits the public interest, or to stimulate certain industry sectors for the benefit of the overall economy. 

There are over 1,000 grant programs available at www.grants.com.  Grants are not easy free start up money.  Be advised, grants to start a business are awarded only after a thorough application and review process.

Angel Investors

An angel is an investor that provides business start up money in exchange for shares in the company.  This type of funding is quite difficult to come by, as it is considered a high risk investment.

Venture Capitalists

This is a group of investors that pool their resources into a managed fund.  Venture capital loans are rarely offered below $1 million and therefore not an option for many small businesses.

Non-Traditional Business Start Up Funding Sources

Home Equity Lines of Credit

A great option if you can get one.  This form of business start up funding is all but drying up due to the current decline in property values. 

Credit Cards

A convenient source of instant capital -- but at a very high price as personal credit interest rates continue to rise.

Equipment Leasing

A good alternative if your business requires expensive equipment.  For example, if you plan to start a professional carpet cleaning business, the equipment can cost upwards of $30,000.

Social Lending Websites

Prosper, Zopa, Loanio and Lending Club are a few of the major players offering peer-to-peer financing.  These sites match investment-minded lenders with creditworthy borrowers.  What’s the advantage?  Loan terms and interest rates tend to be slightly better than brick and mortar banks.

Bootstrapping

The best source of business start up funding!  It requires little or no debt and gives you the financial freedom to enjoy all of the fruits of your labor.  In fact, it has a very positive effect on your credit, as it will cause you to become more responsible with your personal finances. 

Check out the Start-up Business Survival Guide: 101 FREE Products and Services to Help Finance Your Dream of Successful Business Ownership for learning how to get the business start up money you need.

Also see Business Start Up Grants and Minority Business Loans

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