Business Finance

How to Access Business Finance for Small Businesses

When you’re running a small business, it’s important to have access to the finance you need to grow and succeed. There are a number of ways to access business finance, and the best option for your business will depend on a number of factors. In this blog post, we’ll take a look at some of the most common ways to finance a small business.

There are a few different options when it comes to financing a small business:

1. Loans from financial institutions

Banks and non-banking business lenders offer loans specifically for small businesses. These loans can be used for a variety of purposes, including start-up costs, equipment purchases, and working capital. The eligibility requirements and interest rates vary from institution to institution, so it’s important to shop around and compare options before deciding on a loan. Or perhaps enlist a broker to do this for you – have a look at our why use a broker blog

2. Government loans

The pandemic has resulted in several government back loan schemes, though now have most finished, the Recovery Loan Scheme (RLS) is still available although less attractive. Have a look at any possible grants or regional funds available in your area too.

3.Angel investors/venture capitalists

Angel investors are individuals who invest their own money in small businesses in exchange for equity in the company. Venture capitalists are firms that invest in small businesses in exchange for equity. Both angel investors and venture capitalists typically invest in businesses that they believe have high growth potential. However, they also tend to invest only in businesses that are in industries they understand well. That’s why it’s important to do your research and make sure you’re pitching your business to the right people.


Crowdfunding is a way of raising money by asking a large number of people for small donations. There are a number of crowdfunding platforms available. When using crowdfunding to finance your business, it’s important to set realistic goals and offer rewards that will incentivize people to donate money to your campaign.

5.Personal savings

One of the most common ways to finance a small business is with personal savings. If you have enough money saved up, you can use it to cover start-up costs or expansion expenses without having to take out a loan or sell equity in your company. However, using personal savings can be risky because if your business fails, you could lose everything you’ve invested.

6. Bootstrapping

Bootstrapping is a way of growing your business without external funding by reinvesting profits back into the company. This can be done by reinvesting profits back into the company to expand operations or hire new employees. It can also be done by reducing expenses in order to free up cash flow that can be reinvested back into the business. Bootstrapping is often considered the most risky way of financing a small business because there’s no safety net if things go wrong; however, it can be very rewarding if things go well because you won’t have any debt or equity dilution.

7. Friends and family

One final option for financing a small business is through friends and family members. If you have someone in your life who is willing to invest money in your business, this can be a great option. However, it’s important to approach this carefully as there is always the potential for things to go wrong and damage relationships.


Accessing finance is an important part of starting and growing a small business. There are many different options available, from traditional bank loans to more innovative choices like crowdfunding. The best option for your business will depend on factors like eligibility requirements, interest rates, and how much risk you’re willing to take on. It’s important to do your research before making any decisions so that you choose the best option f or your particular situation.

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