6 Ways to Get Money for Your Business

It seems that starting a business is a simple matter. You just need to choose a business model, register with the Federal Tax Service and open a current account. But this is not the case. The task of an entrepreneur is to constantly develop and expand the business. And to do this, you need money. Let’s look at 5 financing options, their advantages and disadvantages.

6 Ways to Get Money for Your Business

Use your own savings

The most obvious way to start a small business is to invest your savings. Some people save money to start their own business for several years. You can open a deposit and constantly save a part of your salary, gifts, benefits, and so on. Sooner or later, you will start working for yourself.

Pros Cons
  1. Independence – only you will own the business, no need to share the profits;
  2. It’s cheap — unlike loans and borrowings, you don’t need to pay back interest.
  1. No one knows how much time you will spend on saving money. It depends on the type of business, state, and income;
  2. You can miss the point — some types of business are relevant for a limited time. As long as you save, the market will be oversupplied;
  3. Risk of losing everything — your investments may not return if the business falls apart ahead of time.

Take a small business loan

It is very easy to get a small loan since the lender is practically not interested in the financial state of your business. But the borrower pays for such loyalty with a short term and high interest.

For example, Cash Advance Omaha helps you find a loan for any purpose. A loan is approved within a few minutes. Loan amounts usually range from $200 to $5,000, terms are flexible and good credit history is not required. Eligibility criteria are relaxed – you only need to be 18 yo, legally reside in the USA and have a stable income. Application is easy and convenient – you only need to fill out a short form on the website and get connected to the right lender.

Pros Cons
  1. Speed — you can get a loan quickly;
  2. Application 24/7;
  3. Minimum paperwork;
  4. Co collateral required;
  5. Fast funding (often the same day)
  6. Bad credit is ok;
  7. You do not need to share the profit – despite the participation of the lender, you only have to pay interest, all the profit is yours.
  1. Additional costs — you need to pay interest for the use of borrowed funds;
  2. Risk — if the business is unsuccessful, you will simply need to return the loan. If you do not make payments on time the bank may start collecting debts.

Attract an investor

An investor is someone who can give you money, resources, or equipment to grow your business. Do not confuse it with a partner. The investor finances your project for a share in the business, while he or she is not engaged in management. In fact, an investor will only contact you when dividing the profit. The investor has a stake in the company or profits, so you will need to keep him or her up to date, consult with him or her on important management decisions and development strategies.

An investor can be a venture fund, an individual, or a government fund.

To attract an investor, you need a business plan and “burning eyes”. If they are interested in your idea, you will receive money.

Pros Cons
  1. Loss of control — the investor will get a share in your business. The bigger it is, the more likely you are to lose control;
  2. Not every business is interesting to the investor — it is unlikely that someone will finance a shoe store, the business should be a breakthrough;
  3. An investor is not an assistant, he or she will not help you with solving every problem;
  4. Part of the profit will be taken by the investor.
  1. You do not need to pay interest for using money — the investor is only interested in profit;
  2. Investors have many other projects that you may need to connect with, perhaps one of them will become your supplier or buyer;
  3. Experience — in difficult situations, the investor can help with advice or even action.

You must carefully read the terms of cooperation with the investor. If you turn a blind eye to it, then your business will very quickly cease to bring you income and will only work for the investor.

Attract business partners

Think about it, maybe you have friends, acquaintances, or just like-minded people who also dream of their own business. It is easier to create a business together — everyone will contribute part of their savings. In addition, a partner is not an investor but a person who will work together with you. You do not have to regularly give money to an outsider who has not invested anything in the business except money to start.

Pros Cons
  1. You will have a person you can rely on — since part of the business belongs to the partner, he or she will invest time and money in its development;
  2. It is easier to find money for business development together;
  3. Trusting relationships – if your partner is a good friend or relative, it is less likely that he or she will try to deceive you.
  1. Less profit — you will have to share it with your partner;
  2. Broken relationships – doing business with a good friend or relative is difficult. Be prepared for personal conflicts. It is better to immediately indicate that there are personal moments and there are working ones.

To simplify the work with your partner, discuss all the conditions in advance: how to share profits, who communicates with customers, who is engaged in promotion, who produces goods, and so on. And establish the order property division after the liquidation of the business — just in case.


Money for an individual entrepreneur or LLC for business development can be collected through crowdfunding – collecting money from caring people on a special platform on the Internet. For example, you want to run a solar-powered chocolate factory (kind of an ECO-business). You post information about your project on the Internet platform and specify the required amount. Anyone interested can donate any amount.

Donors do not get a share in the business, but usually, businessmen give them some advantages: discounts on products or free samples.

Pros Cons
  1. No extra expenses — you do not need to pay interest or share the profit, it is enough to pay a commission to the crowdfunding platform;
  2. You can attract money from all over the world;
  3. You attract customers immediately — your investors will probably be your first customers;
  4. No one claims a share in your business.
  1. Not every business is attracting a sufficient number of funds. The idea should appeal to people;
  2. If the project does not start, you will have to return the money;
  3. You need attachments to promote your crowdfunding page, otherwise, no one will know about you.

Before you try crowdfunding, do some preliminary calculations. Remember that you will not receive all the money collected — the sites take commissions, the budget collects taxes, and the sponsors need to be rewarded with something.

Get state support

The state has set a goal to support small and medium-sized businesses. Therefore, if you are a novice entrepreneur, you can try your luck and get funding in various forms.

Programs, amounts, and conditions are highly dependent on the state, so it is best to contact local authorities, such as USAGov.

Pros Cons
  1. No cost – grants and subsidies are issued on a non-refundable basis and without interest;
  2. No one claims a share in your business — you enjoy all the profits are left to you.
  1. Getting a grant or subsidy takes time;
  2. The amount of funds provided is limited — not everyone can get support;
  3. Subsidies and grants are targeted – sanctions may be imposed for non-targeted expenditures;
  4. If the results are not achieved, you may be required to return the money.