You’ve been told that it takes money to make money. Unfortunately, the world of financing can be complicated- especially if you’re just starting out. Traditional options require several years in business, excellent credit scores, and consistent revenue- which most new businesses simply don’t have.

This is why many small business owners turn to creative financing- it provides a variety of options to fund a business. You’ll have to think outside the box, but chances are that you will find exactly what you need.

7 Creative Financing Options

Below, we’ll take a closer look at 7 creative financing options:


Bootstrapping is using your own money to finance your business. While this does decrease your liability, it also impacts your ability to grow. If you are starting your own business with your own money, it may take years to get going. A business loan, on the other hand, could have you launching within a week. However, bootstrapping means that you don’t have to worry about making debt payments- your business is 100% yours.


You may also want to consider asking friends and family for help. However, you’ll need to have the agreement in writing- and be very specific about the terms. This keeps everyone on the same page and can help avoid spoiling your relationship.

This is one of the most popular- and most affordable- options for funding your small business. In fact, research shows that over 40% of startup funding is obtained through friends and family.


You can potentially earn startup funding by pitching your business idea to investors in a competition. You’ll be competing with other entrepreneurs- so there’s no guarantee that you will get the funds. Still, it will give you a chance to improve your pitch skills, draft a viable business plan, and meet other entrepreneurs and venture capitalists.


A startup accelerator can provide a variety of services to help you launch your business including funding, networking, and counseling. In exchange for financing, they will require equity, but you don’t have to pay it back in cash. Since they are investing in your business, they also want to help you succeed.


Many people believe that loans and grants are basically the same types of funding. This isn’t true. A lender allows you to borrow money to be paid back, with interest. On the other hand, a grant provides money with no repayment required. However, there are usually restrictions on how the grant money can be used based on the grant source.

Angel Investing/Venture Capital

Both angel investors and venture capitalists offer money to new businesses, as well as partnership relations, mentorship, and networking. However, venture capital requires an exchange of equity. This may seem like a good option in the beginning, but you are potentially giving up a portion of control for the lifetime of your business.


In recent years, crowdfunding has become a popular option for securing business funding for startups. In this type of funding, you present your idea to the public via a platform such as Indiegogo, GoFundMe, or Kickstarter for them to make donations. However, keep in mind that when using these platforms, they get a percentage of your donations.

The world of business financing can be complicated. Unfortunately, many entrepreneurs don’t qualify for traditional financing. Fortunately, there are some creative options available. If you need guidance, contact Abundant Wealth Financial to learn more about these options.