Everyone talks about getting business funding like it’s one big pitch.
It’s not!
The answer to how to get funding for a business comes down to three things: Clarity, prep, and timing.
Your idea might be solid. But if your numbers don’t line up, your documents are off, or your ask isn’t realistic, you’re not getting very far.
Most founders find that out after they’ve already applied.
In this blog, we’ll walk through how to prepare smarter, from knowing your numbers to picking the right option, so your next funding attempt doesn’t hit the same wall.
Determine how much funding you’ll need
Before you look at funding options, start with the math of how much funding you’ll need. You need to know how much it’ll cost to run the business and how much of that you can already cover. Start by determining your:
- Initial startup costs: equipment, business registration, setup fees, etc.
- Monthly operating costs: Rent, salaries, utilities, tools, marketing, etc.
Once that’s clear, look at how much cash you already have. The gap between your total needs and your available funds is your funding requirement. Be realistic here. This is the number you’ll use in every pitch, loan application, or investor meeting.
Also, build in a cushion for the unexpected. It’s easy to underestimate costs in the early stages, so leave room for error. The more accurate your funding asks, the better your chances of getting the money.
You now understand how much capital your business needs. But before you start applying for loans or pitching to investors, you need to set yourself up for success.
What to do before looking for funding options ?
Here’s how to get the finances in order:
1. Why do you actually need the funding?
Start by getting specific about what the money is for. Borrowing or bringing in investors adds pressure. So it needs a real, well-defined goal. Before borrowing or seeking investors, you need to ask yourself a few questions.
A few examples can be:
- Expanding operations like setting up a second location, buying new equipment, or increasing production capacity.
- Managing cashflow gaps due to covering payroll during a slow month or bridging the delay between customer orders and supplier payments..
- Covering marketing costs like lead generation, brand visibility, or customer retention.
- Bringing in salespeople, support staff, and specialists to help you hit your next business milestone.
- Paying for licenses or compliance — legal fees, industry certifications, or government approvals.
Your funding options depend on these answers. Small-scale businesses might benefit from loans, while high-growth startups should consider investors.
2. Set a realistic budget
Calculating your actual, realistic financial needs without overspending is essential. Every business is different, and funding should match its scale.
If your business needs only three employees, there’s no reason to rent an office for thirty people. Instead, identify essential expenses and allocate funds accordingly.
3. Consult a financial advisor
Sure, you can Google things. But regulations, loan terms, and investor agreements can get complicated. Talking to an expert saves you from rookie mistakes.
4. List potential funding sources
After analyzing your requirements and budget, list the funding sources that align with your needs. Prioritize them based on:
- Accessibility (How easy it is to secure the funding)
- Interest rates or equity trade-offs
- Repayment terms (For loans)
Some common funding options include loans from banks, online lenders, angel investors, and Venture capital (VC). We will talk about all the funding source options in the next section.
5. Get your documents in order
Once you’ve finalized your funding sources, it’s time to approach lenders or investors. Each option has different requirements, so make sure you:
- Prepare all necessary financial projections, documents, and business plans.
- Clearly explain your business potential and how the funding will be used.
- Build trust and credibility with investors or lenders.
With a structured financial plan, a clear budget, and a list of potential funding sources, you are now in a strong position to secure capital for your business. You’ve put in the effort to prepare your business for funding—now it’s time to find the right source to make it happen.
How to get funding for a business: Options you have
There are plenty of ways to fund your business. Some require you to take on debt, some involve giving up a share of your business, and some require a little creativity.
Let’s break down your options so you can find the one that makes the most sense (and keeps you from unnecessary financial stress).
Conventional business loans
A traditional business loan is one of the most common routes for business owners. Different loans have different terms, so it’s essential to assess each of them to pick the right one for your business.
1. Small Business Administration (SBA) loans
These loans are available through SBA-approved lenders, which include most major banks. Since the Small Business Administration backs a portion of the loan, lenders tend to offer lower down payments, easier qualification requirements, and longer repayment terms.
2. Loan from banks
It’s perhaps the most popular method of financing available to entrepreneurs. However, it is an important decision that should not be made lightly, especially whether or not to take out a business loan.
If you do choose to borrow money, speaking with an actual person is important to correctly fill out the required forms and improve your likelihood of being accepted for a small business loan.
3. Small Business Lending Fund (SBLF)
This government-supported program helps small businesses obtain small business loans from participating banks. The more that banks loan, the more favorable terms they get—terms that can mean lower interest rates and greater bargains for business owners like you.
Before selecting a loan, compare your alternatives, understand the lenders, and make sure you qualify for the best possible opportunity to obtain funding.
Fintech-based funding solutions
Financial technology (fintech) lenders provide a competing alternative to old banks and government initiatives and offer credit lines and business loans on competitive terms.
The fintech lenders are attractive to business owners because the process of getting approved is quick, and they have fewer requirements to qualify for financing.
Still, fintech lenders differ from each other. So, always evaluate each platform based on its loan amounts, interest rates, lending terms, customer support, and application process. A strong track record and transparent service are key indicators of a reliable provider. Here are just a few platforms currently available.
4. Fundbox
Fundbox is a funding solution for small businesses that require quick, short-term funding to cover operating expenses or supplement cash flow. Through business lines of credit and invoice financing, it’s a perfect option for businesses that are financially stable but don’t meet the strict requirements of traditional bank loans.
5. BlueVine
BlueVine provides both factorings for invoices and lines of credit, so it is a versatile choice for businesses with service-based operations or companies that use lengthy payment cycles. You can borrow up to $250,000 in revolving credit and repay it in weekly installments for 6 or 12 months.
6. Square loans
If you’re already using Square to process payments, you might be eligible for a Square Loan without even applying. Square uses your sales history to automatically offer loans that are repaid via a percentage of future sales, making it stress-free during slower periods.
Peer-to-peer (P2P) lending platforms
Peer-to-peer lending is an alternative financing method through online platforms, bringing borrowers in contact with private investors. The platform avoids intermediary institutions, presenting higher flexibility for people who might fail to satisfy the rigid requirements of regular loans.
It’s especially convenient for entrepreneurs or those with poor credit, though this greater accessibility tends to have higher interest rates. Though it doesn’t compete with government grants or loans, it’s a viable alternative when seeking out varied financial options for capital.
You can use these platforms for peer-to-peer lending:
7. StreetShares
StreetShares is a peer-to-peer small business lending marketplace based on affinity, connecting qualified retail and institutional investors to small business owners, primarily military veterans. The business owners present their business through a three-step, mobile-accessible application, and investors bid to fund them through an auction.
8. Prosper
Prosper supports small businesses by pairing individual lenders and borrowers seeking personal loans by offering fixed-rate, unsecured loans from $2,000 to $50,000 with a 3- or 5-year duration.
For those who desire to settle debts, purchase major items, or pay for business-related expenses, especially if they fail to qualify for loans, Prosper offers a hassle-free financing option. The eligibility criteria of a borrower depends on their credit record, income, and other economic details.
9. Kiva
Kiva is a non-profit peer-to-peer lending site providing 0% interest microloans of up to $15,000 to small business owners and underserved entrepreneurs. It doesn’t use a credit score, collateral, or business background.
Instead, it is based on community backing, business effect, and financial empowerment. Perfect for individuals who cannot meet conventional qualifying requirements, Kiva makes funds available to start-ups through the use of social-backed approval.
Small business grants and federal government funding
Small business grants sound like free money—and in a technical sense, they are—but getting one may be challenging. They’re competitive and have particular eligibility criteria, but they don’t give up control or impact the cash flow in your accounts.
If you’re willing to do the paperwork, here are a couple of business grant programs worth a shot:
10. Small Business Innovation Research (SBIR) Program
Supported by the Small Business Administration (SBA), this is among the most reputable government business grants available for businesses engaging in research and development. The program awards small business grants between $150,000 and over $1 million to assist technology start-ups and innovation-oriented projects.
11. The Freed Fellowship Grant
It offers $500 monthly grant opportunities to small business owners, with a focus on supporting diverse and underserved entrepreneurs. Winners also receive a one-on-one strategy session and access to the Freed community for ongoing guidance. It’s a good fit for those looking for new business owners looking for funding and mentorship.
12. FedEx Small Business Grant Contest
This yearly initiative awards grants to business owners who desire to grow operations or streamline logistics. Recipients receive cash grants as well as in-kind assistance such as printing and shipping. It is perfect for small companies seeking exposure, equipment, and money assistance without jumping into conventional loans.
13. Amber Grant for Women
Run by a nonprofit organization, this business grant offers monthly awards of $10,000 to women-owned businesses, plus an additional $25,000 year-end grant. The application process is simple, with minimal documentation and a $15 fee. This is one of the most accessible business grant programs for female founders seeking business funding.
14. Minority Business Development Agency (MBDA) Grants
The MBDA offers funding opportunities to help minority-owned businesses in innovation, growth, and job creation. Programs change from month to month, with emphasis on businesses that aid in community development and economic growth. However, the business grant recipients should meet targeted eligibility and demonstrate clear business impact.
Angel investors and early-stage funding
Getting a business loan when your startup costs are high, and your credit score is… let’s say, “under construction” is rough. Angel investors can save you the day.
They usually invest between $25,000 and $100,000 in early-stage small businesses, often in exchange for equity. If you’re okay with giving up some control and want someone who’s invested in more than just your cash, angel funding could be the move.
15. AngelList
AngelList brings early-stage startups and accredited angel investors together by offering infrastructure to both parties—investors looking for vetted opportunities and entrepreneurs looking for startup capital. Centralizing capital, talent, and communication, AngelList expedites the journey from business idea to funded business venture.
The platform facilitates open deal-making and streamlines equity fundraising for for-profit businesses interested in innovation and scalability.
16. SeedInvest
SeedInvest gives startups the chance to raise capital from a potent mix of backers—high-net-worth individuals, VC firms, and everyday investors alike. The platform has helped fund over 250 businesses, and its network of 500,000+ investors is growing fast.
They’re selective—only 1% of applicants make the cut—but that’s because they’re looking for solid teams and strong business ideas.
17. EquityNet
EquityNet is a platform for crowdfunding that bridges entrepreneurs and accredited investors. It provides sophisticated business planning capabilities and patented analysis to assist companies in maximizing their fundraising.
With over 10,000 firms and over $600 million of capital raised since 2005, EquityNet is a powerful platform for investors and startups alike.
Check out this pitch deck example for inspiration on how to communicate your value proposition to investors.
Crowdfunding platforms
Crowdfunding has become a viable financial solution alternative for small business funding, particularly for early-stage ventures testing product-market fit. While these platforms support small business readiness, they require planning, high-quality content, and strong marketing to gain traction.
However, financial support is often released only if the fundraising goal is met, and service fees can affect the net capital raised. Still, for eligible companies, crowdfunding remains a useful path to test market demand and raise funds without debt. Here are a couple of crowdfunding websites that will help you get business funds.
18. Crowdfunder
This platform is focused on equity crowdfunding so that small business owners can raise capital from accredited investors. It’s ideal for startups ready to scale and offer equity in return. Companies with a strong business plan and traction hold a good chance with Crowdfunder.
19. GoFundMe
Although not customarily applied toward business capital, GoFundMe may be employed for startup firms in need of public backing—particularly local, social, or mission-oriented undertakings. It doesn’t ask for any deadline or set quotas. However, businesses must have a strong statement of purpose to get the funding.
VC for high-growth startups
It is a structured form of equity-based funding where firms source capital from federal agencies, investment groups, and institutional investors, allocating it to business ventures with strong scaling potential.
VCs target for-profit companies—often existing businesses—that demonstrate impressive annual revenue potential, a clear competitive advantage, and proven leadership. Unlike SBA loans or state and local government grants, VC isn’t bound by credit requirements or rigid funding terms. Instead, it’s about future growth and ROI.
It isn’t easy to come by, but there are a few solid VC platforms online if you know where to look.
20. Crunchbase
Crunchbase is a powerful database where business owners can research thousands of U.S.-based VC firms, track funding rounds, and identify investors by industry or location. While it’s not a direct funding platform, it’s widely used to find and connect with VCs who actively fund for-profit businesses in the U.S.
21. Alumni Ventures
Alumni Ventures is a U.S.-based firm that funds early-stage and growth-stage startups. They manage one of the most active VC networks in the U.S. and are unique in sourcing deals through a community of university alumni investors. If you’re a company that is eligible with a scalable idea, this firm could be a good fit.
Startup pitch competitions for funding
Startup competitions give business owners a chance to pitch their next big thing in front of investors—for cash, connections, or even small business grants. These events usually pop up in cities with lots of tech-focused small businesses, and they often revolve around specific industries.
You won’t need a minimum credit score like you would for a business loan—just a strong business plan and the ability to explain your idea clearly. For anyone funding their new business with personal funds, this is a lower-risk way to seek investment.
22. Raiz pitch competition
The Raiz Pitch Competition offers startups the opportunity to compete for non-dilutive cash prizes across two categories: Pre-Seed and Seed startups. Each category’s top three winners receive cash prizes, with first-place winners receiving up to $15,000.
The competition culminates in a live pitch at the Raiz Summit, providing participants with exposure to investors and industry influencers.
23. Startup World Cup
Organized by Pegasus Tech Ventures, the Startup World Cup is a global competition that brings together startups from various sectors to compete for a grand prize of $1 million in investment.
The competition includes regional events across continents, culminating in a grand finale in San Francisco. Participants have the chance to pitch their ideas to top-tier investors and forge corporate partnerships.
24. MIT $100K Entrepreneurship competition
The MIT $100K Entrepreneurship competition is a student-managed business plan contest that has launched over 160 companies, collectively generating thousands of jobs and significant VC funding.
The competition is structured into several stages, including Pitch, Accelerate, and Launch, each focusing on different aspects of business development.
Self-funding and bootstrapping strategies
Not every founder starts with a check from investors or business grants. Sometimes, it’s just you, your idea, and what’s in your bank account. It’s how many small businesses begin, especially when flexibility and control matter more than rapid scaling.
Below are smart bootstrapping methods you can use to launch or grow your business on your own terms.
25. Use what you’ve got: savings, freelance work, and side gigs
Your personal bank account, freelance projects, and any side income can all help cover the early bills—whether it’s software, a website, or product samples. Set a hard limit on how much of your own money you’re willing to spend, and keep personal and business expenses separate. A business bank account isn’t optional.
Doing client work on the side, like designing, writing, or coding, can also cover costs while you test your business idea. It buys you time and keeps you from rushing into risky loans or outside funding too early.
Most bootstrapped ventures begin with personal funds, small wins, and creative marketing. Proving early traction not only brings in revenue but also builds the case for funding later.
“Most first-time founders think they need funding before they can start. In reality, you should treat traction as your pitch deck.”
“I used memes to drive millions of impressions, then turned that attention into paying customers. The proof of demand made it easier to attract advisors, partnerships, and eventually investors—but only after I built something people were already paying for. Virality is leverage.”
—Jason Levin, founder of Memelord Technologies and author of Memes Make Millions
Bootstrapping gives you control, and if done right, it can give you leverage
26. Friends and family support
In the early stages, funding from family and friends is a realistic option. But approach it the same way you’d approach a national association or small business technology transfer program: With structure and transparency.
Clarify how funds will be used—whether for equipment financing, inventory, or operations. Document everything. Many small businesses use this phase to build credibility before applying for business grants or external financing later.
27. Pre-selling products or services of existing business
Selling before you launch might sound bold, but it works. Offer special deals for early customers and let them know their support is helping build something real. This early revenue helps small businesses stay lean and avoid debt-heavy options.
If the response is strong, it also signals readiness for the next steps—maybe small business grants or support from the economic development administration.
28. Business credit cards for business owners
A business credit card can help you handle initial expenses—like website tools, marketing costs, or replacing that ancient laptop. Many other business owners start here, too. Just keep an eye on the interest rates of the business credit card, and don’t overspend.
If your digital business growth planner says you’re tight on cash flow, use rewards cards to stretch value. It’s a business credit card, not capital. Treat it that way.
29.Selling Assets
Sometimes, funding your small business is as simple as looking around. Selling unused or rarely used equipment can bridge early financial gaps. If you’re not ready for equipment financing or don’t qualify for small business grants, this is a no-pressure way to access funds and move forward with minimal risk.
The bottom line
You don’t need flashy investors or personal wealth to get your business off the ground. What do you really need? A solid plan and a clear picture of what it’ll cost.
How much do you need for launch, growth, or to keep the lights on? Figure that out first. Then, explore what makes sense—small business grants, a traditional bank loan, or a mix of options.
Upmetrics helps you make that happen. It helps you map it all out with solid projections, investor-ready business plans, and simple templates that save time and sanity.
