borrow money

Borrowing for a business is not very easy. After you look at your own money, go to friends who have none, and then go to the bank where you turned down because you’re too risky, where do you go then? You might give up, but there are many more non-traditional ways to get money to get that business off the ground. You just have to think outside the box a little. Though some of what we present here isn’t far outside the box, some are not what you might expect. Here are a few of our picks that might get you to that bold entrepreneur status.

borrow money


Ok, this one isn’t any big secret. Angel investors are always the best way to go. The trick is finding an angel investor that willing to put money up. If you want to make the effort, there are many websites that have angel investors. You are still going to have to put in a lot of work to make it happen, but it is possible.

SBA microloans

These are loans up to about 50,000 dollars. They are much easier to get than the normal SBA loans, the interest is not that bad and payback is about six years. There are certain limitations and qualifications but for general business, these are fairly good. However, they are still loans from a bank, so you will still be putting a personal guarantee and possibly collateral up. But still, if you can do it they are good.

Online peer to peer

Peer to peer is something that has come fairly recently. These are like lending clubs online. The interest rates can be spectacularly low depending on your credit, but can also be spectacularly high. You would post your project and all the information online and various people would decide if they’re willing to put a certain amount of money up. If you have an interesting project this is definitely something you should try.


Similar to peer to peer financing is crowdfunding. Some sites such as Kickstarter have been around for quite a while. If you have a good project this is probably the best way you can go. Unfortunately, it is not quite as easy as it used to be, but if you do enough marketing and you have an interesting product it might work for you. Some people have raised millions of dollars with this and the nice part is you don’t have to pay anybody back.

Business credit cards

When you open a business it is fairly easy to get credit cards for that business. Although you might have to guarantee them with your own personal credit there are many of them do not require that. So, if you’re going to be starting something that doesn’t require a lot of cash, but does require equipment, then this can be a way to go.

Accounts receivable loans

If you are already in a business or thinking about buying one, you can actually borrow against accounts receivable. This is the money that is owed you in that business. So if you have 50,000 dollars that people owe you but not paying anytime soon, you can go to a factor or someone that loans against those payables for a quick loan. We do not suggest this as the interest rate is rather high. But in a pinch, it can help.

Vendor financing

Our favorite out-of-the-box thinking trick is vendor financing. Basically, if you have a business you have vendors that supply you product or a service. Sometimes you can go to these vendors and sign an exclusive contract with them for a certain period of years and actually borrow money from them. They are getting a good interest rate from you, and they know that they are going to get money from you for orders because they are the only person you can buy from for whatever they’re supplying. So your business is locked in with theirs. Not all vendors will do this but if you have a good deal almost every business person will at least listen to you. And if you find one that does. you’re on your way.

The object of a business is to make money. So you have to think that people lending you money is another business. They are in this to make money. Some people, such as venture capitalists, are in it for everything, even your soul. Others, such as Kickstarter, are in it just to see you succeed. There are more ways to borrow money for a business out there than you can count, so if you find the right angle, somebody will loan you if you spend enough time searching. It’s not going to be easy, but if you work it out it the results of the success can be spectacular. We wish you the best in your business.