PrintWhile there are numerous financing options available to start-up businesses, some of them may not be practical until the company gets further along in its operations. Here is a list of the types of options available for start up funding:
- Self financing from the founder's cash assets
- Investment from family and friends
- Investment from angel investors, professional investors who invest in companies. Read more in our overview What Is an Angel Investor? if you think this may be an option for you.
- Borrowing money from a bank or other lender
- Borrowing under an SBA loan
- Lease financing, in order to acquire equipment such as computers and office equipment
- Venture capital financing, from venture capital funds
- Financing from strategic partners
- Financing from potential customers
Of course, there is always "bootstrapping," or funding your startup yourself! Yes, it is possible. Read our article Starting a New Business with Bootstrap Funding for some ideas — as well as an important warning.
If you decide to apply for a loan from the U.S. Small Business Administration (SBA), it might be worth your while to take a look at The AllBusiness.com Practical Guide to SBA Loans, a 56-page kit with background, sample forms, and full instructions.
