Bank Loans

If your credit is good, consider getting a conventional business loan via AdvancePoint Capital. Long-term loans typically come with lower monthly payments, but it’s crucial to consider how much interest you’ll be paying over the entire term. Also, keep in mind that you’ll need to make payments on time and in full to maintain your credit score. If your credit isn’t that good, and you can’t get an unsecured loan, find a cosigner who will accept responsibility for the loan if you can’t make the payments. Having a cosigner will make approval more likely, but they’re risking their own credit history on your behalf, so it’s not a request to be made lightly.

Find Investors

By giving up a bit of equity, you may be able to find a willing investment partner that can offer your business equity capital. While most business owners are reluctant to relinquish control, it can be a win-win if your new partner has the industry experience and the funds to pull it off. Remember, though, that investors often have their own ideas, and you may have to accept their input in return for the funding you receive.

Tap Into Your Savings

This do-it-yourself method keeps you from giving up equity or going into debt. While that may sound great, it can be quite daunting to dip into your savings. If you take this route, be sure to set some money aside for a rainy day. Many startup owners pull themselves up by their own bootstraps, and using your own savings offers the autonomy and flexibility you deserve.


There are thousands of potential supporters out there, and thanks to the rewards-based crowdfunding model, small business owners can now access them. Kickstarter and other platforms allow entrepreneurs to get in touch with prospective backers who can pledge at various levels and receive benefits in return.

Family and Friends

These are your closest allies—they want to see your business succeed. Accepting funding from them will offer a big boost, but just as with conventional investors, it’s best to have everything in writing. Promissory notes, which establish a loan’s terms and conditions, can do much to eliminate hard feelings and resentment down the line.

Credit Cards

Depending on your score and history, establishing a credit line may help you maintain control of your small business. It’s important to remember that interest rates are often high, and the failure to make timely payments will drop your score, which will make it much harder to get credit later. If you’re contemplating using a credit card to fund your business, be sure to understand its terms and conditions.


A microloan allows a person to borrow a small amount ($50,000 or less) to get a business off the ground. Small business owners may find this funding source particularly useful, as they often have trouble getting financing through traditional lenders.

The Bottom Line

Starting a small business or growing an existing company can be tough, especially when it’s time to secure capital. Consider your long-term strategies when choosing a financing option and you’re more likely to find the funding you need.


Finding the Right Small Business Financing Option - 23Finding the Right Small Business Financing Option - 1Finding the Right Small Business Financing Option - 75Finding the Right Small Business Financing Option - 4