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Five Ways of Financing a Business Without Banks

Money and graphs

In the current economic climate people are trying to find new and innovative ways to bring their entrepreneurial ideas to fruition without turning to banks.

Though this may sound close to impossible, there are actually a number of ways this can be done. Using one or more of the following strategies for raising money just may help you to open the business of your dreams.


Sure, this is generally associated with schools and other organizations, but it can certainly be effective.

Seek out businesses that are willing to donate goods or services that you can turn around and use for your benefit.

Barbecues, concerts and selling small seasonal items can generate a large profit, especially if you made no initial investment.


Forge relationships with members of your community and pitch your idea to them. You may find another likeminded individual who would like to see your business open and flourish in your community.

Silent partners are another choice. These people simply want to reap the benefits without involving themselves in your daily operations.

There are some drawbacks to having investors, however, especially if they want to help run the business - so weigh your options carefully.


Similarly to fundraising, you can use donated goods in an auction to raise much-needed capital.

Another possibility is to auction off shares of your business online, making it possible for people from around the world to assist you financially.


This rather new phenomenon is generally used for the production of software or other creative endeavors, but the possibilities for fundraising are certainly there for a wider spectrum of ventures.

A call to action on the web can stir up interest in your idea, perhaps getting hundreds, if not thousands, to donate to your cause, so ultimately you can launch your business with funds from all over the world.

Website donations

Similar to crowdsourcing, you can create a web page outlining details of your business idea, with a donation button for people who are impressed enough to contribute.

Be careful not to share too much information, but be honest and direst when asking for money - you just might get what you want.

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