Credit Cards

One of the most used financing options for a startup business is the credit card. In a 2012 study done by the National Federation of Independent Business it was found that 79% of small business owners have used credit cards either to start or to grow their business. According to another study, using a business credit card has a tremendous positive effect for both the business and the economy as a whole. Even Google’s founders started their business using a credit card. In fact 4 out of 5 small business owners used one.

Microloans

Microloans are issued to low income earners and people who do not qualify for bank financing. These loans are small, but they have helped 74 million entrepreneurs around the world to build their business. As of 2009, there have been $38 billion in microloans. It is also interesting to note that microloans have a repayment rate of 95-99%, which means that the business owners who have taken out a microloan have had enough success in growing their business to pay it back.

Personal Savings

This is the number one option for you if you don’t qualify for credit cards, microloans or traditional bank financing. This is a great option to help you get started, but you should look into correcting any credit problems you have had in the past, because you never know when a credit might be the lifeline for your business. Make sure you have the big picture in mind and that you keep all of your options open.

Family and Friends

A great source of financing is from the people closest to you. This option is available to some, while not so much for others. Or you might be somewhere in the middle, where you’ll need to do some convincing. Either way, you should know that if you do manage to get one of your close ones to invest in your business, you should treat them as you would any angel investor and keep them up to date on how things are going.

Conclusion

Planning is great and it should be done thoroughly, but when the time comes for action, you need to be able to pool all of your resources and execute. This is the trait of successful business owners. You roll with the punches, take your lumps, learn from your mistakes and you keep moving forward.