5 Alternative Ways to Fund Your Business Investments

It’s no secret that small business owners and entrepreneurs often struggle to find funding. Sometimes the funding is necessary to start a business and many times the money is used for operational purposes.

There are a few simple tips you can utilize to get the funding you need to start your business and/or ensure your company is thriving.

Venture Capital or Bank Loans

After you’ve developed your business for some time, you may need a bank loan to cover certain operational costs. Working capital loans can help you take care of the mortgage or rent for your building. You can also use the loan to pay employees or cover the cost of shipping goods to customers.

You’ll have to provide the lender with years of financial details to secure this type of loan. Some banks and other financial institutions will require you to provide collateral to secure a loan. To facilitate the loan process, it’s best to connect with a lender during the early stages of business development. You should interact with the bank on a professional level for a while before applying for a loan. You can sign up for a credit card or merchant account through the bank to establish rapport. This increases the chances that your loan will be approved.

If your company is growing rapidly, you’ll likely reach a point when you need venture capital funds for growth. If this is the case for your business, you may need millions of dollars to expand your inventory or improve your marketing efforts. When your investors have money to offer, they will research your business to determine your current and future success. Be sure to present your business in a positive light to let investors know they’ll get a substantial return on their financial contributions.


When your business is in the initial stages, you’ll likely have to use your own money and financial resources. This means you may be utilizing funds from your personal credit cards and savings accounts. It’s so important that you use your money wisely and as sparingly as possible –this requires having a plan in place so you can start generating income as you’re spending money.

Family and Friends

If you don’t have any credit cards and don’t have enough in your savings, you can ask your friends and family to invest in your company. It’s best to have an honest conversation with your loved ones and let them know their money may not be returned, especially in the early stages of your business. However, you should make every effort to pay your relatives and friends back with interest when you can. After all, they believed in you and you don’t want their financial “grant” to go unappreciated.


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If you don’t feel comfortable asking your relatives to help fund your company, you may want to think about crowdfunding. This method of raising funds allows for several small investors to contribute to your business in its early stages. You can also incorporate crowdfunding into your company structure as your company expands and you need more money for product development and advertising efforts. Crowdfunding is beneficial because every investor can give a small amount and likely won’t expect repayment.

If you decide to use crowdfunding, make sure you’re honest with investors about what you’ll use the money for. Once you’re able to make progress in your company with the funds you’ve received, update your investors and show them which products and services they’ve helped to develop. You can even send a small gift as a token of appreciation.

Angel Investors

When your business has experienced success for a few years and you’re ready to enter the new phase of growth, you may want to consult with angel investors if you find you need additional funding.

An angel investor is an individual or group who uses research and financial resources to provide business capital. If these investors contribute to your business, you’ll have to give them partial ownership. So, it’s best to choose angel investors you trust.

You can find angel groups and individual investors in your local community and online. These investors will clearly explain their objectives and mission. When you reach out to the investor(s), they will research your company to determine if you meet the necessary requirements. Then you’ll meet with the angel investors and determine the amount of funding you need for your company. Remember that you’ll have to make good on the investment by making wise sales, marketing, and financial decisions that will increase your professional success.

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