Creating a new business from the ground up is extremely difficult. You had to start with an original idea that fills a market niche that isn’t already met. Then you have to write your business plan, incorporating all the potential costs that will be attached to your startup. You do your market studies, product testing, and all the other steps to determine if your business is viable. You have put all the thought and planning into your business needs, but now you have to figure out how to fund it!

There are several ways to get startup capital. If you have a good enough income or enough time, you could save the startup costs for your business. Having said that, if you had the amount of income you need to do that, you aren’t likely to be starting up a new business.  

You could seek out angel investors, but remember that any investors you have will typically expect some kind of ownership stake in your business, even if they have no intention of helping with the operation of your business. Depending on your investors, it might be worse if they did decide to be a part of your business’s day-to-day. 

The most common way for most business owners to get their business off the ground is to seek a business loan. A business loan will need to be repaid with interest, but ideally, you can grow your business quickly with the right funds, so the investment will pay off while allowing you to keep 100 percent of the business’s value for yourself. According to seekcapital.com (https://www.seekcapital.com/startup-business-loans/StartupBusinessCapital.html), there are quite a few options for startup funding available right now. 

SBA Startup Loans

The small business administration should be the first stop for any new business trying to get off of the ground. In addition to financial resources, the SBA has a wealth of resources available for new businesses. They have access to grants as well that might not even need to be repaid. 

The SBA also has specified loans for the purpose of starting new businesses. You will not have business credit established, so your loan will be approved on the viability of your business plan, your assembled assets, and your personal credit. These loans typically are relatively low interest, with reasonable repayment terms. 

Business Credit Card

If you have strong personal credit, a business credit card with a higher limit might be your ideal option. Many credit cards offer points that can be redeemed for cash rewards, airline miles, or other benefits. This is especially attractive for businesses that plan to recoup the costs quickly and can pay balances off each month. 

The other benefit of a business credit card is that it allows you to maintain a revolving available balance. This is helpful once you have paid it down and have emergency costs arise. With a business card available, you are ready for the surprises that get thrown at your business.

Friends and Family

While taking on investors might make life difficult, it can be less frustrating to deal with your friends and family. This could be a situation where you have family give low-interest loans, or you might choose a close friend to invite in as a business partner. The biggest fear of this funding source is that you might damage a close relationship if anything goes wrong with your startup.

To summarize, don’t hesitate to look for nontraditional routes to getting your business financed. Consult the SBA before anything else to look for low-interest loans and even nonrepayable grants.