Introduction

Money is an absolutely necessary resource for starting a business. For example, if you purchase a domain name or web site, you need money. If you want to promote your web site via paid traffic, you need money. Spending money can help to develop your business faster. Although I am not an official finance planner, I find some fund raising methods as below for your reference:

1. Fund from Your asset

The best way is to use your own money such as saving account, money market account, etc. If you own your home, then you can consider a home equity loan or a home equity line of credit, which has lower interest rate than any other kind of bank loan.

Most of us have stuff sitting in our garage, or spare room, that we are not even using. And we wouldn’t notice if it was gone. The old saying about certain things being one person’s trash, but another person’s treasure, is very true.

Online selling platforms such as eBay are ideal to sell your stuff on. You could also have a garage sale, or rent some space at your local market. You would be surprised how a few things can add up quickly to a decent amount.

You may also have a second car that you are not using, which could be turned into cash.Or, you could be a business owner with inventory or office equipment that could be sold. The point is to brainstorm what stuff you could sell and live without.

2. Getting A Second Job or freelance

Getting a second job or freelance is not ideal, and will eat up a bit of your time – but it can be very useful to quickly save up enough to start your business. It goes without saying that you should be targeting a job that pays well, and doesn’t rob you of most of your energy.

3. Borrowing from friends or family

You may have friends or family you’re close to, who would be prepared to lend you money to start your business. Doing this should result in either a low interest rate, or possibly, no interest at all – which is a huge advantage.

4.  Partner Buy-In

One alternative to borrowing from friends or family is a partner buy-in. But without a doubt there are plenty of risks and drawbacks associated with it. For example: they will share your profits, they may have conflict with you on business decision. In worst case, it is possible to lead to broken friendships or strained family relationships. Personally, I do not want to partner with close friend or family.

5.  Sponsors/Advertisers

If you currently have an established business of any sort, you could benefit significantly with funding from sponsors and advertisers. This is quite achievable if there are companies out there, who see value in having their business associated with your brand. For example, a blogger could offer banner advertising on their website. It goes without saying that the more people that are going to potentially see these advertisements, the more you can earn for it.

6.  Credit Cards

Credit cards are one of the easier ways to get funding (providing you have decent credit history). However, be careful the high interest rate. So, Credit cards can be a fantastic source, but the key is you have to pay it back fast, otherwise, you are in risk of paying high interest.

7.  Bank Loan

With a bank loan things are much less complicated than a line of credit. If you have a good relationship with your local bank, or have good credit, a small business loan from bank may be available for you. You may be able to borrow an agreed amount, for either a fixed or variable interest rate, for an agreed term. Similar to a line of credit, you will be offered a better interest rate if you have a decent credit history, but a weaker credit history could result in a higher interest rate.

8.  Social Lending

The boom of the internet has added a new method into the world of financing. On social lending websites, one individual can apply for a loan from other individuals. The two parties set their terms and the Website acts as an intermediary. Two popular sites that do this is Prosper.com and LendingClub.com.