Raising small business capital is necessary for entrepreneurs. They need cash to pay for immediate expenses, marketing, office space, store opening, product launches and others. They need a steady flow of debt or cash to start their own small business and keep operations running.

Here’s how to build capital for a small business.

Small Business Administration (SBA) Loans

Get a loan from the SBA to start your small business or maintain operations as you expand it. The government wants small business owners to succeed because they’re an important part of the economy. The SBA provides entrepreneurs with different types of loans to address their needs.

Angel Investors

This type of investor is looking to fund the next big hit. Some of the biggest companies now got their funding from angel investors during their infancy stage. They can provide entrepreneurs with the capital they need to expand and develop products. However, angel investors will most likely seek a share in your business.


You don’t have to look for a big-time angel investor or lender to help fund your small business. Platforms such as Kickstarter and Indiegogo provide entrepreneurs a way to seek funding from people. They can provide various amounts to help you reach your total goal. Look for other websites that meet your objectives.

Personal Finance

Raising small business capital is possible using your own savings. Some lenders don’t grant loans and credits to small business owners because of the risk they will take. That’s why you have the option to use your own savings, assets or a second mortgage to fund your company. However, you also have to consider the risks of using your own money. Your business might run into challenges or fail.

Venture Capitalists

A venture capitalist is similar to an angel investor in the way they invest in small businesses they see potential in. They have the money and are willing to take a risk on a young entrepreneur with a good idea. They also want a share in the company when they invest in you. They want to be part of the management team that guides the growth of their investment.

These are just some of the ways to raise capital for your up-and-coming company. You can diversify funding to reduce the risks. Combine any of the following to reach the amount you need. If you need help with bookkeeping, feel free to browse our accounting services for small business owners. You can also send us an email through [email protected] for more information.