We live in an age where there is an unprecedented rise in the number of start-up companies. Start-up companies [or start-ups] are projects undertaken by independent or groups of entrepreneurs who seek to develop an economic model. Entrepreneurship often refers to new businesses, including self-employed people. Start-ups, however, refer exclusively to new businesses that intend to grow very large, with the founder at the helm; start-up companies face a very uncertain future and have high levels of failure, however, a small number of them do go on to achieve huge levels of success.

One of the most difficult hurdles for a start-up company to overcome is the initial cost to start up their business. Start-ups can cost a lot of money and finding the cash flow to offset the costs associated with the company can often be very difficult. But, with the help of this article, that will no longer be a problem. In this article, we will hope to tell you how you can raise funds for your start-up so you too can achieve financial independence and get your name on the front page of all of the entrepreneurial magazines. Here are the basics of raising funds for a start-up.


There are many ways in which one can get a loan, but for the purposes of this informative guide on how to raise funds for your start-up, we will discuss the two most prominent, and the two with the highest success rates. Before moving on, it’s important to mention that you must only ever borrow from licensed lenders. Inviting unlicensed lenders into your life can be a recipe for disaster, for they are often just loan sharks. Loan sharks are to be avoided, for they can cost you a lot of time, money, and stress.

Payday Loans

Payday loans are the most common method of start-up loans, but not the only method. Payday loans can be a great asset, for you can get the money the same day, and may be able to borrow up to twenty-five thousand pounds. For a payday loan, you need only have a good credit record and have a good record of making repayments to creditors. Payday loans must always be honored, for not paying them can leave a mark on your credit score. And, another benefit of payday loans, according to the loan specialists of Lucky Loans, is that they will never call you or ask for an upfront fee. Payday loans are certainly a wonderful way to fund your start-up.

Bank Loans

Bank loans are an alternative to a payday loan, although the process of taking out a bank loan can be very laborious and is certainly not quick. You will be required to have an exemplary credit report, and you will have to jump through a number of hoops to get the loan, such as meetings with a loan manager and pitching your business plan to them. However, bank loans do have one redeeming feature, and that is that you can borrow much larger sums of money with lower interest rates. Many cannot wait the months it takes to get one of these loans, however, and opt instead for payday loans.

Friends and Family

Borrowing from friends and family is, of course, the safest option for borrowing money, but can be a big problem. If you borrow money from friends and family and fail to repay them, you can sever ties with them forever. Additionally, they may feel obligated to lend you the money even if they themselves cannot afford to lend you the cash. Think long and hard about borrowing from family and friends.

Selling Your Goods

Selling your goods and your belongings online or in a yard sale, if you have no other options, could be a good way to raise money. It is always hard to part with our belongings, but if you are confident that a start-up will allow you to earn a good chunk of cash and that your business plan is worthwhile, then selling your goods is just a temporary investment. Think of it as an investment in your own business plan, which if you had savings you would do anyway.

Independent Investors

Many platforms exist nowadays for you to advertise your business plan online and attract independent investors. Independent investors could be a fantastic way for you to raise the money to start your business and get it going. Give this some serious consideration for your start-up’s funding.

With the help of this page, you now know a few ways in which you can fund your start-up. Funding your start-up does not need to be as hard as many make it out to be. Whether you choose a loan from a company, a bank, relatives, or sell your goods, if you believe in your business, do whatever it takes to raise your funding.