Business Financing Options

While there are numerous financing options available to start-up businesses, some of them may not be practical until the company gets further along in its operations. Here is a list of the types of options available for start up funding:

1. Self financing from the founder's cash assets
2. Investment from family and friends
3. Investment from angel investors, professional investors who invest in companies. Read more in our overview What Is an Angel Investor? if you think this may be an option for you.
4. Borrowing money from a bank or other lender
5. Borrowing under an SBA loan
6. Lease financing, in order to acquire equipment such as computers and office equipment
7. Venture capital financing, from venture capital funds
8. Financing from strategic partners
9. Financing from potential customers

Of course, there is always "bootstrapping," or funding your startup yourself! Yes, it is possible. Read our article Starting a New Business with Bootstrap Funding for some ideas — as well as an important warning.

If you decide to apply for a loan from the U.S. Small Business Administration (SBA), it might be worth your while to take a look at The AllBusiness.com Practical Guide to SBA Loans, a 56-page kit with background, sample forms, and full instructions.