How to Get Business Start Up Financing Without Equity

Starting a new business is both exciting and challenging. Obtaining business start up financing without equity requires knocking on a number of doors. Venture capital firms, private investors, relatives and friends may all be possible options for securing business financing.

• Evaluate the financial needs of your start up. The costs may be minimal or extensive. A website start up may require a programmer, website designer, writer and editor. A business that sells products will need inventory space, inventory, insurance and more. Calculate the total costs involved. Include marketing expenses, such as the cost of ads, brochures, business cards and fliers.


• Determine which aspects of the business can be done for a low cost or free. For example, a relative may be willing to design your website. Your start up may provide a service that you can deliver without incurring expenses.


• Approach start up investors. Venture capital firms and angel investors are known for funding promising business concepts. Present them with your business plan and estimate of financial needs.


• Ask wealthy family members and friends to fund your business. People who trust in your abilities and like your business concept may be willing to fund it with an expectation to be repaid in the future or share in eventual profits.


• Approach colleagues in the industry. Colleagues who see promise in the business idea may be willing to join you in a partnership that involves contributing financially. In all cases, put all financial investments and expectations for repayment and profit sharing in writing to avoid potential miscommunication.