We helped Mariam get the loan she needed for her startup fashion business, to serve a new contract with an important buyer only a few months after launching

How to finance a startup

It's not only existing businesses that can get finance – start-ups are being considered as more financeable too, with unique new platforms becoming more prominent. Alongside this, the government are now trying to help, encouraging entrepreneurs to set up businesses and working hard to ensure this gains momentum.

First, it must be stressed that you don’t get anything for free. Lenders often want something in return for their money – this is usually some form of security or perhaps a personal guarantee. It's important to keep your expectations realistic and your priorities in order.

If you believe you fit the criteria for finance, there are plenty of products and lenders out there which will help – and not just the banks. Here’s some of the most popular finance choices available to start-up companies.


Crowdfunding is a great way for start-ups to get a vital financial boost. The concept is fairly simple as it uses an online platform to take a large number of small investments to reach a target value. If this is met, the company receives the money and the investors will usually take a small share in the company. The reason this is such a popular and effective method of fundraising is that there is a smaller risk for investors (because they usually invest small amounts) and it rewards unique and interesting business ideas and propositions.

Short-term loans

Similar to the bank, business loans are straight loans based over a pre-agreed period of time and set to various interest rates. These are often fairly expensive and the business would have to have some security in place to raise the finance – such as equity in assets or money set aside. If the finance is more urgent it may be worth looking into emergency business finance.

Business grants

As highlighted earlier in the article, the government are very keen to help start-ups and small businesses. Although very difficult to get, there are various grants handed out by the government which have helped numerous start-ups in the past.

Pension-led funding

Pension-led funding lets you borrow from your personal pension in order to invest into your business. This puts you firmly in control of your finances, and is a great way of growing your business whilst potentially increasing your own pension in the process.

Overdraft alternatives

Most commonly in the form of a flexible overdraft, this is an alternative to what your bank would normally offer you. With this type of overdraft, you have more control over how you access additional funds and can turn the facility on and off – but is usually offered to businesses who can prove they can make a turnover as the terms are based on your sales ledger.

Cashflow loans

There are plenty of cash flow boosting alternatives available which can help grow your business. Many of these facilities have been created to suit varying business types so it is well worth taking a look at all the options to see which would suit your business the most. These loans are intended to grow a small business and can be very effective if matched correctly.

With such an array of options, as a business owner, you should never underestimate the value of a non-biased intermediary such as Funding Options, as we are positioned in a way to ensure your business can get exactly the support it needs. Whether this is by providing fast, honest answers, using in-depth knowledge of the market, or offering a helping hand – we always work hard to help you on your journey.

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