Categories: Hard News

5 Ways to Start a Business WITHOUT Traditional Financing

Starting a business is difficult enough without having to secure financing. However, it’s possible to get your company off the ground without being gouged by expensive banks and lenders.

Here are a few ways to get the cash you need to start a business, fast.

1. Rent Out Space

Do you have a parking space or an extra room that you can live without? You could capitalize on it by renting out your extra space.

Parking on the street and buying a futon can help you earn hundreds of dollars of passive income each month. Simply advertise your offerings and wait for applicants to flood in.

Use online message boards, social media, and service marketplaces to get the word out. Using this method, you could start a business without accruing any debt.

2. Grants

If your business operates within certain spheres, your company could qualify for state, federal, or even international grants.

Unlike loans, grants do not need to be repaid. However, they are competitive and more difficult to obtain than standard bank loans.

To find grants that your business is eligible for, start with nonprofit and government organizations that are applicable to your field or industry. For example, there are grants solely for female entrepreneurs.

Before locking into a high-interest rate, consider grants as a starting point.

3. Home Equity Loan

If you own a home and are right-side-up, you could obtain financing through the value of your property.

Homeowners can typically borrow up to 85% of the home’s total equity amount. You can also borrow money in the form of a loan or line of credit.

However, borrowers must still make payments on their mortgage and their home can go into default if they miss any loan payments.

Using a home equity loan or line of credit is a great option for people who need a large sum of cash at once.

4. Auto Title Loan

Do you own your own vehicle? You could be literally sitting on a pile of cash.

Auto title loans are based on the value of your vehicle, and the amount you borrow could range from hundreds to thousands of dollars.

Borrowers still keep full use and control of their vehicles. The application process for an auto title loan is easy, and you can receive your funds in as little as one day.

5. Personal Savings

This is probably the most obvious option on this list, but there are a ton of different ways to increase your income. This is the best choice for business owners who want to minimize debt as much as possible.

If you are maxed out at your day job, you can take a part-time or remote job to cover the difference.

Popular side gigs include:

  • Driver
  • Nanny
  • Freelancer
  • Bartender
  • Musician
  • Tutor
  • Web Developer
  • Graphic Designer

While not ideal, moonlighting is the most cut-and-dried way to organically save the money your business needs to stand on two feet.

Launching a business is a huge feat, regardless of how you choose to pay for it. Instead of settling for sky-high interest fees and rigid repayment plans, consider using one of these alternative financing methods to start your company now.

IFP Media Wire

Reports and views published in the Media Wire section have been retrieved from other news agencies and websites, and do not necessarily reflect the opinion of the Iran Front Page (IFP) news website. The IFP may change the headlines of the reports in a bid to make them compatible with its own style of covering Iran News, and does not make any changes to the content. The source and URL of all reports and news stories are mentioned at the bottom of each article.

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