Get Funding For Your Startup Business

new enterprises

Every business requires money, but new enterprises require more capital than any other sort of business.

startup businesses

To begin with, startup businesses are brand new organizations, which means cash flow is limited if not nonexistent.

inventory and equipment

You'll need inventory and equipment to grow your firm, but it will be difficult to secure funding if you don't have any expertise to show funders.

acquiring funds for business
business fundability process


The 3 Cs Capital Acquisition Formula

primary purpose
intial steps to acquire capital

A lender’s primary purpose is to ensure that business owners repay them in full and on schedule.

cash flow
main reason behind capital acquisition

Lenders consider cash flow, collateral, and credit when determining a company's fundability.

more "Cs"
many options for financial alternatives

The more "Cs" you have, the more financial alternatives you have.

capital and fund arrangement

Getting Business Capital as a Startup

Credit lenders see a few red flags in startup enterprises.

Startups do not have cash flow, their time in business is limited or nonexistent, they may lack collateral, a new business may not own equipment, and they most likely do not own any property.

As a result, new entrepreneurs must be inventive to obtain capital for their business ventures.

401K Financing

Retirement earnings from a 401K plan can be used as collateral.

Please keep in mind that this is not a business loan.

You will not be charged an early withdrawal penalty or a tax penalty.

You put the money back in by donating, just like in any other 401K plan.

This means you won't have to give up your retirement savings.

This program is known as a 401K Rollover for Working Capital, while the IRS calls it a Rollover for Business Startups (ROBS).

According to the IRS, a ROBS qualified plan is a distinct entity with its own set of regulations.

The plan, rather than the individual, owns the trade through its firm stock investments.

As a result, certain filing exemptions for individuals may not apply to such a plan.

This is not a loan against your 401K, thus there is no interest to pay.

It does not rely on 401K or stock as collateral.

401K Financing: Terms and Qualifying

eligibility for terms and conditions

IRA Financing

IRA Financing

Equipment Leasing

Equipment Leasing: Terms and Qualifying

incentive for crowdfunding

Reward-Based Crowdfunding

If you have a huge personal network, ideally via social media, then reward-based crowdfunding may be the best option for your company.

You can get cash for your business from your fans.

Begin your crowdfunding campaign with a service like Kickstarter; always read the fine print before joining up.

If you do not accomplish your target by the end of the campaign, several crowdfunding services force you to forfeit your funding.

Indiegogo, on the other hand, offers a flexible fundraising option to help you avoid losing your work.

Crowdfunding platforms will take a percentage of the funds received by your campaign.

Crowdfunding platforms may also press you to deliver on your promises, which means you'll have to create your goods while collecting funds.

Donors may become wary of crowdfunding proposals as a result of incorrect information shared on social media.

When contributors can intimately connect with a product or service, crowdfunding works best.

Simple businesses may not do as well on these platforms.

On crowdfunding websites, artistic pursuits typically perform the best.

Because crowdfunding campaigns take time, only try this method of funding if you believe you have a good possibility of success.

Reward-Based Crowdfunding: Terms and Qualifying

meet the eligibilty criteria for crowndunding

Equity Crowdfunding

Equity Crowdfunding: Terms and Qualifying

Peer to Peer (P2P) Lending

Angel Investing

Angel Investing: Terms and Qualifying

angel investing guide

Federal Grants

Federal Grants: Terms and Qualifying


Microloans: Terms and Qualifying

SBA Microloans

SBA Microloans: Terms and Qualifying

Credit Line Hybrid

Credit Line Hybrid: Terms and Qualifying

Vendor Credit

Benefits of Business Credit

what is vendor credit