Need Money To Start A Business? Start Here

The world revolves around money. Hence, it is nothing short of a basic necessity. Nothing in the world can be bought or started without it. Therefore, even businesses need capital to start and thrive. If you’re born filthy rich, the problem’s already solved. But not everyone may be as privileged.

Besides investing one’s own money, there are numerous ways of financing a business venture. Here are some tips to help you kick-start your business.

Ask your family & friends

Considering the business isn’t large-scale, aspiring business owners should first look to their close friends and family as a means to fund their ideas.

Usually, they are the first to offer support and a lending hand when starting a new venture. It is because they wholeheartedly care about you and want to see you and your business thrive. You can ask them for financial support by lending you some initial investment. It is one of the most viable options as you know someone or the other will readily provide you with the capital at a reasonable rate of return.

It would be best if you tried to get your business-minded friends and involved as they would understand your plans much better than the layman. Try to tell them about the potential risks and rewards beforehand. That way, they’ll know what they’re getting themselves into. It would be best if you had a solid business plan ready.

Also, consider enrolling in a masters in accounting online to up-skill and learn the ropes of financial management. Having unrealistic expectations from them could lead to them being uninterested, and you need to avoid that at all costs.

Lastly, it would be best to decide which form of payment they’ll accept in return for the loans and have a proper plan to pay them back. You can do this through P2P (Peer-to-peer) computing to keep track of it all.

Go to a Bank

Taking a loan from a bank is one of the oldest and still one of the most common forms of financing a business. You can get loans from banks, credit unions, and finance companies. Banks usually have varying interest rates.

However, banks may not give out loans to start-ups or small businesses unless they can guarantee to pay back. A stellar business plan, as well as a definite plan on how and when you’ll be repaying the bank its borrowed money, is essential.

And if not the bank, you can always turn to a Credit Union. Credit unions are non-profit. They’re a group of members that pool in money for the mutual benefit of the Union.

On the other hand, finance companies provide individuals and businesses with loans to help them kick off their venture. These companies borrow money from the state at a low interest rate and then loan out these amounts at a higher interest rate. There are also private lenders loans for businesses, such as Kapitus small business loan, that can easily provide you the capital needed, and for some of them you can even apply online.

Put your head and money into it

Starting a business while worrying about the countless problems that come with it only makes you more skeptical. To make you even more committed to your new venture, funding your start-up with your own money is an excellent idea. There’s no better feeling than doing so. It helps build a sense of intense responsibility and ownership.

However, it is best to ensure your decisions are carefully curated, which, in turn, will result in your business thriving. Initially, it may sound risky, but the greater the risk, the greater the reward. Imminently, investors will want to work with you as they’ll know you’re a risk-taker.


One of the coolest yet most beneficial things to ever happen to the world of entrepreneurship is crowd-funding. Large groups of people raise small amounts of money to fund business projects and new ventures. Numerous people have had great success with it, thanks to their great pitches and products. Therefore, this is a brilliant option for potential business owners to consider.

Websites like Indiegogo and Kickstarter will help you post your idea and attract customers depending on how good your pitch is. Through crowd-funding, you can get immense support, if not financial, directly from the members of the sites. In turn, this will help you attract investors if your idea is brilliant enough.

Look for Venture Capitalists

If you have a mind-blowing pitch that has high potential, you should look towards venture capitalists. Venture capitalists are firms that provide promising businesses with loans to help them kick-start or expand. In return, venture capitalists receive interest on the capital they invest or charge a fee for managing the fund provided by them. They are the mature version of angel investors, mentioned below.

A blessing in disguise, Angel Investors

Angel Investors are literal angels as they provide start-ups with capital. By definition, they are rich people with a yearly income of USD 200,000 or more to ensure they can continue financing a business. Angel investors can be an excellent source of finance for your business as they provide huge loans.

The significant difference between them and venture capitalists is that angel investors ask for ownership equity, usually 20-25% of the business. That way, you don’t have to pay back any loans. They will become a part of your business and receive profits, just like you. Hence, making it a win-win situation for you and your angel investor.

However, as the amount of money they lend is huge, angel investors require a proper business plan, a clear direction, and extreme dedication. To win their trust and support, you must show them you are confident and enthusiastic about your venture and its near future.


All forms of financing require some paying back either in the form of interest or profits. Therefore, it is necessary to make a carefully curated decision that suits your goals. Check Daily Prosper for more information about money raising.

The tips mentioned above will help significantly with your future endeavors. Whichever route you choose to bring your business idea to life, know that your ultimate goal should always be to maximize stakeholder value. This includes your investors and your customers.