by Jason Dittmer, Director of Marketing
| Jan 11, 2018
What are some ways to get funding as a startup with little to no business history?
Whether you are in the initial stages of starting your business or looking for additional funding to grow; prepare to be flexible and creative. Remember, your source of funding may not all come from a single place.
In fact, many entrepreneurs and small business owners piece together their funding from separate places and at various times. Funding from friends and family is a very popular option to raise funding for a startup. According to the 2012 Global Entrepreneurship Monitor report, the vast majority of startup funds (82 percent) came from the entrepreneur, or from family and friends.
Other than family and friends, here are five quick ways to get funding for your startup:
1. Business Credit Cards – Unsecured revolving lines of credit in the form of business credit cards are a powerful tool to consider.
2. Microloans – For amounts under $50,000, you should consider a microloan. The SBA works with designated intermediary lenders across the country to provide microloans to small business.
3. Crowdfunding – One of the fastest ways to cast a big net for attracting investors to a business is through crowdfunding.
4. Credit from Vendors – Vendor credit is the largest use of capital from business-to-business and remains the number-one alternative to personal and small business loans.
5. Personal Business Loan – Securing a traditional business loan can be a time-consuming process and uphill battle for a startup. In a recent study, only 34 percent of small businesses received traditional funding through their bank, compared to 75 percent of larger businesses.
Read this full blog at www.sba.gov/blogs.