When most people think of financing their business operations, be it a start-up venture or an expansion to an existing business, the very first source of funding that pops into mind is the bank. Turning to the banks isn’t a bad initiative at all, especially when you think about it from the point of view of the banks in terms of their approach to lending money for business owners. If a bank agrees to lend you money, what they’re essentially saying to you is that they truly believe that your business is going to be successful enough for them to get their money back with interest, as per the terms and conditions of the loan. As you may know by now, banks just don’t take risks with the money they lend out, which can often work out rather negatively for those business ideas which don’t fit into the traditional mould of what a traditional business is perceived to be.


Entrepreneurs with out-the-box ideas particularly have trouble getting their ideas or businesses financed by banks, even though they’re sure they have a winning idea. There are countless stories of entrepreneurs who’ve since hit the big time after having to explore a different approach to financing their business operations, in the wake of banks simply refusing to lend them money. Part of what it means to be entrepreneur is the ability to spot opportunity where traditional establishments (such as banks) can’t see any and so this makes for the biggest compelling factor for turning to different financing mechanisms.

A Personal Loan

For some reason banks seem to be keener on lending out money through personal loans than for business ventures, so you could go back to the exact same bank that refused you a business loan and apply for a personal loan instead. You might have to settle for a lot less money and you’ll probably need to produce some solid proof of income, but whatever little bit you manage to get could be used as capital collateral to apply for a business loan from another bank. The money you get through that personal loan can then be “invested” into your business.

If you still fail to get a personal loan, a variation of this comes in the form of a guarantor loan. These types of loans are a great workaround as well if you have bad credit, but you’ll need someone to play the part of the guarantor, as the name suggests.


Crowd-sourcing continues to gain popularity as a means through which to raise money to fund just about anything these days, but particularly to fund business ventures and so-called “unconventional” business ideas. There are many different crowd-funding platforms which offer a variation of funding models, one of which is pure funding, where you don’t even have to pay back the money raised. It’s more like a grant, but then the trick is to solicit funds from people who are feeling outright generous and simply want recognition for forming part of the funding group of your business’ development. Otherwise you can just issue some equity over the same platforms and still maintain a controlling stake in your business.

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