Creative Financing: 7 Sources You Should Know

Starting and running a business can be filled with promise, opportunity, excitement and the potential for an excellent career. Of course, one of the biggest challenges you’ll face starting out, or even at other times, is having the capital you need to effectively run your business. Paying employees, meeting obligations to customers, and purchasing and maintaining equipment and supplies is essential to any thriving business. To meet these demands, you may need some financial help. You don’t always need to rely on a bank to loan you the money you need. The following are some ways to obtain creative financing and get you on solid ground.

Go Online

While it’s wise to be wary of sources you find online, if you look carefully and do your due diligence, you can find reputable online lenders to meet your needs. Online lenders can usually approve your loan and have your money to you much more quickly than traditional methods. Sometimes, the process can take just a few days.


Also known as accounts receivable financing, factoring is an excellent way to improve cash flow. Here, you sell your accounts to a third-party company known as a factor. The factor will give you an immediate cash payout, which you can then use to pay for whatever your business needs. Plus, you can eliminate one task from your business and focus your efforts elsewhere.

Angel Investors

This is another creative financing option to consider. In exchange for a percentage of their return on investment, these investors are willing to loan money to startup companies. This is an option growing in popularity among companies in all industries.

Venture Capitalists 

These investors are interested in lending money to and investing in companies that have significant potential and high risk. If you believe your company falls into these categories, you may be a good candidate for venture capitalists to help.


If your business is heavy on research, you may be fortunate enough to get grants to fund your needs. Companies in the science also go benefit from this creative financing to help take care of necessary costs.


While it may be difficult convincing one investor to help with your financial issues, finding several investors to put in smaller amounts of cash may be easier. Crowdfunding pools together the resources of many investors.

Family and Friends

Don’t shy away from asking family and friends for the money you need. You can rest assured that these trusted confidants will grant you better rates and terms.


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