If you’ve got a great idea for a new business and the energy and enthusiasm to launch it, but lack the funds to get it off the ground, you’re in good company. A recent survey by the National Small Business Association found that 1 in 4 small businesses was unable to get the funding needed. When you’re starting out with no track record, it can be tough to convince banks and investors to take a chance on your startup venture. However, there are other ways to get the capital you need to get your business off the ground, and here are some ideas to start with.
 

Before you gamble all of your assets on your startup #business' success, take time to consider every aspect, draft a thorough business plan, and set achievable goals.Click To Tweet
 
 

Grab a Partner

Launching a business on your own has its benefits — no need to discuss your decisions or deal with differing opinions. But businesses with more than one founder are more likely to succeed. Part of this is because you’ll have two sources of startup capital investment instead of just one, but a partner can also provide support and motivation for the tough times.
 

Refinance Student Loans

If you need more money for your business, the most obvious thing to do is free up money you were spending elsewhere. If you have outstanding student loans, consider student loan refinancing to reduce your payments. Depending on your payment, you could save $25 to $100 or even more per month, resulting in thousands of dollars saved over the life of your loan — and every little bit helps!
 

Downsize Your Assets

You might already have the money you need in non-liquid assets such as a house, a car, a boat, or other property. While it sounds drastic to sell your house in order to fund your business venture, think of all the money you could save on lawn care and utility bills! Consider switching your house for an apartment or smaller home, an expensive car for an economy model, and selling all other nonessentials.
 

Borrow Against Your Assets

Image via Flickr by 401(K) 2013
If you’re a homeowner, you may qualify for a home equity loan, also known as a second mortgage. The amount you can borrow depends on your home’s value and how much you currently owe on it. A home equity line of credit is a viable option as well; it’s a revolving credit account, similar to a credit card, backed by your home equity with a much lower rate than MasterCard or Visa will offer.
You can also borrow against a 401K, Roth IRA, Thrift Savings Plan, or whole-life insurance policy. The benefit of borrowing against these investments is that it won’t affect your credit score since you’re essentially borrowing from yourself. Interest rates are typically lower, too. However, you need to be careful to follow the rules; these are short-term loans ranging from 60 days to five years and need to be paid back in full as agreed to avoid adverse tax consequences and stiff penalties.
 

When you're starting out with no track record, it can be tough to convince banks and investors to take a chance on your startup. However, there are other ways to get the capital you need to get your business off the ground. Click To Tweet
 
 
Whatever strategy you use to raise the capital you need for your business, keep in mind there’s always an element of risk involved. Before you gamble all of your assets on your business’ success, take time to consider every aspect, draft a thorough business plan, and set achievable goals.
 
What are your suggestions for finding cash for startup ventures?
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