Last Updated on Apr 15, 2020 by James W

Many people have a business idea, but when they think about how they’re going to fund it, they often become discouraged. Depending on the idea you have in mind, startup costs can seem overwhelming initially. The first suggestion people often give when you’re thinking about how to raise funds for a new business is to go to the loan and get a bank. However, you may not be able to take out a loan for reasons such as not having good enough credit or perhaps you’d rather not start your business in debt. If this is the case for you, this article is going to suggest five ways that you can raise funds for your startup without taking out a loan.


It may seem obvious, but one of the first ways to raise money for your business without taking out a loan is to save. When you have an idea, you may become impulsive and want to jump in right away, but at times, waiting may be a better idea. You can use this time to firstly plan and calculate exactly how much you need and then determine how long it will take you to save that amount. You can begin saving portions of your income as well as raising funds from other places as well. If you decide to take money out of your monthly pay, why not set up a direct debit? You can have the funds wired to your saving account on a monthly basis until you gather the funds you need. In addition to this, you can save money to start a business by distinguishing your needs from wants, setting and sticking to a budget, and resolving to only pay for what you use. Aside from putting some of your income aside monthly, another way of saving is to get a part-time job that will help you generate more income. You could consider some things such as working at a restaurant, tutoring, or freelance writing. Additionally, you could think about looking for a higher paid job or sell any items at home that could give you a reasonable profit.

Forex Trading

Many people shy away from trading because they simply don’t understand what it’s all about. This is usually because it can seem extremely confusing to your average person if it isn’t simplified. However, if you learn the fundamentals of trading, you may be able to generate a decent return that could be used to start your business. In short, forex trading is essentially about buying and selling currencies against each other whether it be as a short-term trade or a long-term investment. If you’re wondering exactly how you can make money trading forex, when you exchange one currency for another, and the price eventually changes, you end up making a profit. Ideally, the currency that you bought should increase in value in comparison to the one that you sold. To avoid losing money, you should, of course, take time out to learn how the market works. Practice makes perfect, so consider using a practice account which allows you to trade hypothetically before using any of your hard-earned money. You should also start small, understand the trade implications, and protect your account the best you can. Seeing as the global forex market is said to do more than $5 trillion in average trading volume, if you know your stuff and have a couple of good strokes of luck, you stand a chance of raising the capital you need for your startup eventually.


Sometimes the government allocates funds to support new technologies and causes in the areas of education, medicine, and social needs which come in the form of grants. You should, therefore, do your research to find out if there are any federal grant programs available that you can apply for as this may be a reliable way of funding your startup. This will likely be a competitive means of getting access to funds, so you’ll have to ensure your idea and plan are worthwhile. You should also know that applying for grants is usually a long process so you’ll need to be patient. There are hundreds of grants that are available for small businesses so you should try your luck and see if you meet the criteria for any of them. 


If you happen to have extra cash to spare, buying gold may be an investment idea that could give you a reasonable sum of cash for your startup. It has been found that gold and other precious metals such as the likes of platinum and silver are more likely to hold their value than most paper currencies are. As with trading, understanding the market is key if you decide to go into buying and selling gold. One of the first things that you should consider is timing as this matter in how lucrative it will be for you. March is said to be the best time to buy gold as prices are apparently at their lowest during this month but paying attention to national and global economic trends is essential. You should also pay attention to politics as economic uncertainty is likely to drive up the price of gold as well. If you do decide to buy and eventually sell gold, you could consider using a company such as LPM as you can buy, sell, as well as store gold with them. Not only can precious metal help you raise funds for your business, but it is also a good way for you to build wealth.


If you happen to know someone who shares a similar passion and interest for your startup idea, why not think about partnering? This should reduce your costs significantly and also help you share the workload with another person who may be helpful. Before choosing a partner, try and ensure that they’re trustworthy, competent, and share a similar vision for your startup to you.

One of the most difficult aspects of starting a business is often finding the funds to do so. It can be tedious, discouraging, and sometimes seem impossible, but it’s important that you don’t give up. When things get tough, try and be persistent and focus on the idea you have as well as how the existence of your business could make a difference in the world.

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