Small Business Financing Options for Startups

Financing a small business is surely a challenging task. It is very difficult to raise capital as risk is involved in any start-up model. For a start-up or small business, cash inflows are very essential to nurture it. There are many sources for business loans and now your job is just to find the right one.

There are many institutions like Capitall that helps to succeed the small businesses. In this article, we will see several business loan options for financing small businesses or start-ups. Do have in mind, that every small business loan option has its pros and cons. You must find out the best one that suits your business model.

Mobilize your savings

It is one of the commonest methods to fund your own business. If you have a dream business to be launched, you have to work for in and start saving money. Debts are good and helpful, but your own money can never let you in any trouble.

Use your salary

If you have a dream business, do not think of it to only start it in a big way instantly, take little steps forward. Firstly, do it as a side business, create a small customer base. Grow step by step. Do not leave your existing job immediately. Start it slowly, invest your salary in it. See how it works after the idea leaves it’s abstract and starts taking shape.

Credit Card Financing

It is also one of the quickest ways of getting business loans. If you have a good credit line history, make use of it now. It is a hassle-free technique to get money.

Ask your friends and family for financial help

This stands as the second common method when it comes to financing business. You can explain your dream to someone who would trust and help you with it. But it is very important to spend the money carefully and make sure that your beloved ones do not feel bad.

Find Angel Investors

Angel Investors are the third party people who are skilled and have sound knowledge and experience in the business. These people look for start-ups with brilliant ideas and invest their money. Through this, they aim to earn good returns. When the Angel Investors finance your business, you have to share your business equity with them.

Find your business partner

If you have a great business idea but postponing it just because of money, find a partner! Businesses can also be worked out in partnership. Isn’t? Let your mind think about it and assess the positives and negatives. If you do have a person whom you can trust, this is going to work great for you.

Small business loans

The provision of small business loans in Singapore is very famous. All the creative and employment increasing ideas are acclaimed and supported. There are banks and financial institutions like Capitall that usually offer small business loans to SMEs and the Corporate sector. It is one of the quickest ways to get money.

Royalty Financing

Royalty Financing – Many are not aware of this concept. It is a very new financing option and it is completely different from equity financing or debt financing. When you are going for a Royalty Financing you will get an advance payment from the investors or a group of investors.

With this money, you can start the operations. In exchange for it, the person who invests in your business will get a specific percentage out of your future revenues. You don’t have to lose any equity from your business if you opt for Royalty financing.


It is one of the easiest and cheapest options for financing a small business. There are best crowdfunding sites like Capitall on the internet. All you need to do is to complete the registration process and start your crowdfunding campaign.


It simply means the amount – receivable finance. Through this type of business loan, you can recover your cash quickly. It is a kind of a transaction with a small business. It makes the small business to see all its account receivables to a third-party financial institution that is known as a factor. Factoring is a very good option when the cash inflow is slow in your business.

Venture Capital

Investors will invest in startups which they think to have long term growth potential.

Incubation Centers

Incubation centers are the starting point of nurture for many businesses. They not only work on your business startup ideas but also help you to launch your business and expand it.

Fund your business through contents

Yes! You are reading it right. Banks, financial institutions, government and private organizations like Capitall are all encouraging youth to become entrepreneurs. They have a great role in the economy as they create more jobs. If you have start-up ideas, present them in the content and entrepreneurial events. Once, it is recognized, your dream is in the making

What do you think?

Written by Danny Dotson

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