Are you looking to fund your business but don’t have any money? Maybe your new business will cost you more than you initially thought and you don’t know how you will fund it?
Or are you curious and want to know more? Whatever your question might be, we are here with the answers for you!
Finding a method to fund your business can be tricky, especially if you don’t have the extra cash to fund it yourself.
You find yourself scrolling for hours, searching through a sea of advice, only to end up more confused than when you started!
![How To Fund Your Business With No Money [8 Best Methods]](https://www.business101.online/wp-content/uploads/2022/11/How-To-Fund-Your-Business-With-No-Money-8-Best-Methods.jpg "How To Fund Your Business With No Money [8 Best Methods]")
Frustrated and disappointed, you wonder if you will ever be able to fund your business. The prospect of starting the business even seems dashed.
Well, no more! Today, we are here with 8 of the best methods you can use to fund your business with no money! Keep reading for some inspiration, guidance, and everything in between!
How To Fund Your Business With No Money
Let’s dive straight into it! Today, we have 8 methods you can use to fund your business if you don’t have the cash to fund it yourself. Each of these methods will generate or provide you with the money you need to fund your business.
No matter which method you use, be sure you consider it carefully. This is especially true when borrowing money. Check who is liable for the loan and if it can impact your personal credit, and the interest rates before you sign any contract and take the money.
If you need any assistance, be sure to seek the help of financial advisors.
Let’s get into the list and see what method you can use to fund your business!
1. Sell Any Assets
If you are in a position to, you can sell some assets to fund your business. This could involve selling your car, second home, or other expensive assets like jewelry or artwork.
This method won’t be suitable for everyone, but it's a good starting point if you have assets that aren’t being used.
For those without expensive assets, you can sell old clothes, DVDs, games, or anything around your home. If you haven’t used it in the last year, chances are you won’t use it!
Sure, this might not generate a lot of money, but the extra could go a long way in helping your business!
2. Earn More Money
Again, this method won’t work for everyone. If you can boost your income. This could be a side hustle (like dropshipping, selling items online, completing surveys), or you could change jobs. Statistically, people who job hop can earn more money, so see who is hiring.
You could also ask for a pay rise in work or apply for any available promotions.
While these promotions or pay rises could come with extra responsibilities and an increased workload, they could provide you with more disposable income that could be saved and later invested into your business.
3. SBA Loan
SBA or Small Business Loans are a fantastic way to fund your business if you have no money. These loans are designed for small, new, and established businesses. These loans come from the government, which will match you with a lender in your area.
SBA loans are considered lower risk and are designed to set your business up and earn money quickly. There are a few different types of SBA loans available to you.
It’s best to check directly with the SBA to see what type of loan would work best for you and your business.
4. Personal Loans
Personal loans involve you directly borrowing money from a lender. These loans will have a fixed interest rate and length, for example, four years to pay back the money. They are a quick way to get money into your business and can be applied for quickly.
It is worth noting that you are responsible for a personal loan. You will need to make the repayments and your credit will be impacted if you fail to repay the loan on time.
Not everyone likes to put themselves and their credit on the line for a new business, but it is a viable option, especially if you only want to borrow a small amount of money.
5. Seek Out Investors
Another option is to seek out investors. Instead of borrowing money from a lender, an investor will pour their money into your business. This is usually in exchange for a stake in the business.
They might own as little as 5% or as much as 50% of your business in exchange for their money. Investors might also invest for a share of the profits or payouts should you sell the business at a later date.
Investors come in all shapes and sizes. They might be a silent investor that just wants to see a return on their money, or they might want to be actively involved in the business.
When accepting money from investors, you need to establish who is liable should anything happen to the money. It's worth seeking legal advice, especially if you have never dealt with investors before.
6. Friends And Family
You can also keep it close to home and receive money from your friends or family. This could be an investment, a gift, or a loan from friends and family. These can be similar to investors or personal loans, depending on the agreement you strike with them.
Although they are your friends and family, it's best to have some legal document acknowledging their money entering the business, whether this needs to be repaid, or what the money entitles them to.
Doing so at the start can avoid any unpleasant conversations or situations down the line!
7. Crowdfunding
You can also turn to crowdfunding to fund your business. This involves using sites like Crowdfunder or Kickstarter, where people across the world will donate to your business.
You will need to create a donation page and explain what the money is going towards.
Some websites will take a portion of your donations or a fee for you to use the site, so be sure you check this beforehand. It's best to update your donors frequently when using these sites.
It shows them where their money is going, and often encourages others to invest in your business too!
8. Credit Cards
Credit cards are a good option for those who don’t qualify for a loan, or don’t need a lot of money. But they are a dangerous game.
Credit card debt is ridiculously easy to accumulate, and the high-interest rates can leave many people in a financial hole.
You can beat this, though. Borrow a credit card with a 0% interest rate period. Make the payments you can afford, without worrying about high-interest rates!
Once the period reaches its end, take out another credit card with a 0% interest rate and transfer the remaining debt. It allows you to pay back what you can afford every month without adding more money to the final bill!
Final Thoughts
And there you have it, eight methods that will allow you to fund your business without any money! While not all of these methods will be suitable for you, we are sure there is a method or two here that you can use!
Just be sure to seek financial advice before borrowing any money and ensure that you can make the monthly repayments.