Small Business Funding and Financing Options

When considering small business funding options, you have two choices – business debt or equity. However, there is no universal funding method. Each option has unique requirements, benefits, and drawbacks that you must consider.

To find the right business financing, you need to understand your business needs. Basic considerations include why you need funding, how much you need, and how quickly you need it. Additionally, you should take into account the specific terms, type of debt, and potential requirements from lenders or investors.

Now, it’s time to start exploring your options. This guide will assist you in doing just that.

8 Small Business Funding Options to Get the Money You Need

What are your business funding options?

While there are endless options for funding your business, they can be categorized within these eight categories.

1. Friends and family

Some successful businesses started with money from friends and family. But it’s not just a handshake, you need a plan and accountable documents.

2. Bootstrapping and self-funding

Every business owner will have to bootstrap at some point. This means using personal resources to get your business up and running.

3. Business loans

Applying for a small business loan from a bank or credit union is a common and accessible funding option. Here, we’ll cover how to apply, what to expect, and answer common questions.

4. SBA loans

These are not direct loans from the SBA, but more accessible loans from traditional banking institutions backed by the SBA. We’ll walk you through this program and how to rework your business plan for this type of loan.

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5. Venture capital and angel investors

This funding is reserved for high-growth companies with promising potential returns. We’ll provide an overview of outside investment and tips for approaching investors and VC firms.

6. Crowdfunding

Crowdfunding platforms are a great way to test your business idea and gauge interest. We’ll go over the basics and insights on using popular platforms.

7. Grants

A small business grant is money awarded without repayment or equity required. They are more common for nonprofits.

8. Small business credit

While your business can build credit, your personal credit score and history are more important.

Explore your funding options

Looking for a quick way to explore multiple funding options? Check out these guides listing top traditional and alternative funding options.

Which funding option should you choose?

With so many ways to fund your business, check out this guide comparing the pros and cons of funding categories.

40 common ways to fund your business

Check out our growing list of funding options. This guide is updated regularly for new opportunities.

Top alternative funding options

Learn about unconventional funding methods. This guide is regularly updated for emerging and nontraditional options.

The four tiers of small business financing

Funding options can be categorized based on availability, risk, and use.

Fundraising options during a crisis

Additional funding can help keep your business afloat during a crisis.

Small business funding templates and resources

Free resources to help you prepare for multiple funding options.

8 Small Business Funding Options to Get the Money You Need

Free business plan template

Pursue funding with an investor-ready, SBA-approved business plan.

8 Small Business Funding Options to Get the Money You Need

Use LivePlan for all funding preparations. Create and share your investor-ready plan, pitch, and financial forecasts using a single powerful tool.

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8 Small Business Funding Options to Get the Money You Need

Free Investor Pitch Deck Template:

Impress investors and loan officers with visuals that support your elevator pitch.

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