How To Get Funding For A Business Startup Without Getting A Loan

Punch Financial
3 min readDec 22, 2022

For many founders, starting a business is hard enough without the added stress of trying to get funding. Startup founders have so many things to consider–the products to sell, the services to provide, the audience to target–that securing funding seems like a necessary part of the process… or is it?

Getting a loan isn’t the only way to fund a startup. If you’re creative and willing to think outside the box, you can bring your idea to light with the resources you have.

A lot of founders love to idolize the success of big brands and strive to achieve the same, but they tend to forget one small detail: that big, multinational organization you love probably started off as a small Mom and Pop shop.

So if you think you need to mortgage your house and borrow tens of thousands of dollars from the bank, consider this:

  • Amazon began as an online bookstore.
  • 7 Eleven started as a small grocery stand.
  • Microsoft co-founders Bill Gates and Paul Allen started the $168 billion corporation in a garage.

This is proof you don’t need to secure large amounts of VC backed funding to start a business. As billionaire entrepreneur Mark Cuban once said, “You don’t need to raise money. You need to be smart and be focused.”

How To Start A Business Without Getting A Loan

Many people consider loans as the first and only method for getting the funds they need to start a business. But before you head to the bank and start comparing interest rates, consider the options we’ve highlighted below.

1. Use Your Own Personal Savings

The best way to fund your startup is to use your own money. Not only will you avoid accruing any debt, but you’ll also have full control over your company from the very beginning.

Of course, this option isn’t right for everyone, and it’s important to make sure you have enough money saved up to cover your personal living expenses as well as your business costs. But if you’re confident in your ability to make your business a success, using your own savings is a great option.

2. Raise Money From Investors

Another option for funding your business startup is to raise money from investors. This can be done through crowdfunding platforms like Kickstarter or GoFundMe, or by pitching your business idea directly to potential investors.

If you go this route, it’s important to have a solid business plan and pitch deck that you can use to convince people to invest in your company. You should also be prepared to give up some equity in your company in exchange for the investment capital.

3. Apply for Grants

There are numerous grants available that can help you fund your business startup. The Small Business Administration (SBA) offers several grant programs that can provide financial assistance for small businesses. And there are also numerous private foundations and organizations that offer grants specifically for startups.

Doing some research and applying for grants can take some time and effort, but it can be a great way to get the funding you need without taking on any debt.

Start Your Business Debt Free

Starting a business is a daunting task, but starting debt free doesn’t have to be impossible. There are several ways to get funding for your business startup without taking out a loan. Whether you use your own personal savings, raise money from investors, or apply for grants, there are plenty of options available if you’re willing to put in the work.



Punch Financial

Outsourced finance, bookkeeping, & CFO solutions for #startups! Our clients included Honey, Lootcrate, Kangarootime, Boulevard, and many more.