So you finally have that great business idea and you’re ready to get started, but you just need some money for start up costs; or you’ve been doing well as a business owner, but have hit a rough patch somewhere along the way, and need an emergency fund to get by. Being a business owner is rewarding yet tough, but we have the full scoop below on how to get your hands on more cash!

1. Credit cards
Although credit cards do have high-interest rates, they are a solid to way to access capital when you’re starting up a business (as you don’t have too many other options). Obviously, once you have cash flow a lower interest bank loan or bond will make more sense, but many company founders have started their business on a personal credit card. The risky aspect of a credit card as mentioned is the high interest, usually around 20% or so. (Just make sure you pay it back and it won’t cost you!)

2. Venture Capital / Angel Investors
Venture capital or angel investing is also a good idea for business owners just getting started. The important note to make with these investments however, is that venture capitalists / angel investors will generally want to take over ownership and control from you. Many founders like to keep most of their ownership, but if you are in need of capital these guys can certainly come in handy, not to mention the contact lists and expertise they can also bring to the table.

3. Debt financing
This option will likely only be available if you’re company has been operating for a few years and has stable cash flows. This is because lenders seek to lend money they know they will get paid back, so they are unlikely to lend to a start up. However if you can get it, debt financing is much cheaper than equity financing (venture capital or private placement) so can be a nice source of cash.

4. Selling assets
Although not ideal, if you need cash to continue growing your business it can make sense to either sell business or even personal assets to stay afloat. Note that this should be decided only after careful consideration. If you calculate that the extra cash is very likely to keep your business going, then go for it. Otherwise, think twice before selling your home.

5. Family & friends
I put this last because many people recommend this as a great place to borrow when you’re getting started, but I seriously disagree. Money and family do not mix well and you would never want to ruin a healthy relationship that you have because of money. For this reason, I suggest pursuing all other options (mainly angel investing) when starting out vs. this. Think about it this way; if you lose someone’s money that you don’t know, it will not be ideal, but it’s much better than losing the money of someone that you love.



This article was written by Dr. Hampton from Fine-Tuned Finances and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to