How To Raise Money For A Business Without A Loan; One-Step Guide

Starting a new business can be a pretty tricky job if you don’t have finances. Read ahead to learn some creative ways to raise capital!

Creating a new business comes loaded with a ton of responsibilities and risks. Getting a loan from a bank or insurance will land even riskier situations on your plate. By reading this guide, you can learn how to raise money for a business without a loan.

Raising money with no revenue is difficult and requires a lot of thinking. Figure out how to get seed money for a business with some of the methods suggested below.

What Do You Need Capital?

While starting a new business or even expanding an older one, it is very important to have a substantial amount of money in your bank account. The money is needed for various steps along the way while establishing the business.

The first order of business while creating a business is renting office space to operate smoothly. It is an essential and integral step as, without it, all operations will be unsuccessful. Next up is buying goods and machinery to begin the work.

Another significant expense for a business is hiring employees and managing their payrolls. All of this requires funding. In such times one might be inclined towards getting a loan, but it is better to learn how to raise money without a bank so that there are no additional risks.

Creative Ways To Raise Capital

Raising money with no revenue requires some expert-level budgeting and planning. We are here to get you out of a fix if you don’t have any seed money.


Savings are the safest way to raise money without taking any sort of loan from the bank. Once you invest your savings in the business, you give the professional investors a thumbs-up sign that you trust your business enough to spend money on it. Moreover, it helps in increasing the credibility of your business and makes it seem legit.

A benefit of using your savings for the initial start-up is that there will be no trouble of interest rates, equity, or putting any of your property up as collateral.

2.Angel Investors

Angel investors should be your second option when you are figuring out how to raise money without a bank. These individuals are people in your locality who have enough spare cash lying around to invest in your startup or business. The trick with angel investors is that you need to put up your A-game if you want to persuade them to invest in your venture.

Unlike banks and professional investors, these won’t shy away from investing in newer ideas and might give you the benefit of the doubt because you know them.

Furthermore, you might have some mutuals with them as well since all of you are from the same locality. These mutuals can help strengthen your deal by vouching for you.

3.Side Business

No one said starting a business would be a walk in the park. If you want to be successful with your new business, it is essential to have something on the sidelines to keep you going. You don’t have to get a 9-5 job. Try to get some task that takes some part of your days and pays enough for you to save a little.

Try to choose jobs in the retail sector on part-time or maybe even pick up a few delivery jobs here and there. You can also do freelancing on the side. These won’t take up all your day, so you can still dedicate some attention and effort to your new business venture. It is one of the creative ways to raise capital efficiently.

4.Small business Grants

Another area you can tap into for raising money with no revenue is small business grants. There are nonprofit organizations and lots of other people who are motivated to give out funds to small businesses. It can do wonders for your venture and get you going for a reasonable amount of time.

The deal with small business grants is that you have to whip up a proposal and business plans to get them. The better your proposal looks, the more chance you have of getting the grant.


More than often, when people are trying to figure out how to get seed money for a business, crowdfunding is a definite answer.

As the name suggests, this one involves a group of people. For crowdfunding, you get on to the various crowdfunding sites and look for like-minded people. It includes looking up people who have the same interests and goals as you. Once you do that, you will have the chance to make up a proposal and pitch it to that particular group of people.A tip by successful entrepreneurs is to make sure that you have a vision for your business. You need to have a backstory that shows how you came up with the concept of the company and how you plan on further working on it.

The best part about crowdfunding is that it can reach the sky if you have people skills. You will not be required to go through tons of paperwork. All you need to do is make sure that you can market your product and make it look valuable to the donors or investors. Work on your campaign and you’ll be good to go.

6.Venture capitalists

Venture capitalists operate with a mixture of angel investors and crowdfunding. These are wealthy individuals who are always on the lookout to invest in new ventures. Once again, you need to make sure that you have a pitch and a proposal to convince them.

Also, one added element with venture capitalists is that they will either ask you for equity or management decision making ability. It means that with a venture capitalist, you will have a type of advisor on board who will invest in your business, and all that you will need to do in return is let them take the reins some times.

7.Pre-Sale Of Your Product

Product pre-sale is an excellent option for all those business start-ups who plan on selling one product. By selling your business before officially launching it, you will get the opportunity to bring some level of exposure to your product while also bringing in some cash.

Before you dive right into pre-sale, make sure that you have enough product stored away to not put you out of business. You can also give away special limited-time discounts to increase pre-sales.

8.Equity Financing

Equity financing is one of the last options new ventures go for, but it has a lot of hidden benefits. By equity financing, you will be giving away the ownership of some part of your business.

When a new owner comes in, they will have a fresher outlook on the business and can help get you out of trouble. You can repurchase it from them once you are on your feet. It is a great solution when you are trying to figure out how to raise money for a business.

9.Invoice Factoring

The period it takes for an invoice to mature can be pretty long. Hence, this might leave you out of funds. A very easy way to improve cash flow is by factoring invoices. You can sell off the invoices that are due to you and get some money upfront. This way, you won’t halt your workflow and will have some cash on hand as well.

Sandra Johnson

Sandra Johnson

Sandra Johnson was a few years out of school and took a job as a life insurance agent in California, selling coverage door-to-door for Prudential. The experience taught her about the technical components of insurance and its benefits for individuals and society, as well as the misunderstandings people often have about insurance. She has over ten years’ experience in the insurance industry, having worked as both a Broker and Underwriter, assisting clients across a broad range of industries. At Insurance Noon, Sarah diligently gathers all the required information and curates up pieces to provide meaningful insurance solutions. Her personal value proposition is to demonstrate a genuine interest in always adding value for clients.Her determined approach to guiding clients has turned her into a platinum adviser to multiple insurers.

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