Struggling to Fund Your Startup? 7 Startup Business Funding Options You Might Have Missed

Starting a business is exciting. Finding the money to keep it moving can be much harder.

Many founders feel shut out by banks because they do not have years of business history, strong business credit, or a long list of assets to use as collateral. That does not mean you have no choices.

The right question is not only, “How do I get money?” It is:

What type of funding fits my business, my current revenue, and the way I plan to use the money?

This guide covers seven realistic startup business funding options, including alternative business financing for owners with limited operating history or imperfect credit.

If you are new to the funding process, start with How to Get a Business Loan in 2026: 5 Steps Small Business Owners Can Start Today. You can also review SBA Loan vs. Unsecured Business Line of Credit: Which Is Better for Your Cash Flow? and Working Capital Loans vs. Short Term Business Loans: Which One Fits Your Business?.

1. Personal savings and bootstrapping

Bootstrapping means using your own money and business revenue to fund the early stages of the company.

This could include savings, money from a side job, or reinvesting your first sales into inventory, marketing, equipment, and other business needs.

Best for

• Founders with some personal savings
• Businesses that can start small
• Owners who want to avoid debt or outside investors
• Businesses with low startup costs

Pros

• No loan payments or interest
• No lender approval process
• You keep full ownership and control
• Can show future lenders that you have invested in the business

Cons

• Your personal savings are at risk
• Growth may be slower
• You may not have enough cash for unexpected expenses
• Using every dollar you have can leave you without an emergency cushion

Bootstrapping can be a smart first step, but do not put your entire financial life at risk. Keep enough money available for personal expenses and emergencies.

2. Friends and family funding

Friends and family may be willing to invest in your business when a traditional lender is not. The money could be structured as a loan, an investment, or a simple agreement to repay the funds over time.

Best for

• Founders with a strong personal network
• Businesses that need a smaller amount of early capital
• Owners who can clearly explain how the money will be used
• Businesses that are still pre-revenue or very young

Pros

• May be easier to qualify for
• Flexible repayment terms may be possible
• No formal bank underwriting
• Can help you reach an early milestone

Cons

• Personal relationships can be damaged if the business struggles
• Informal agreements can create confusion
• Family members may expect ownership or decision-making power
• You may feel pressure to repay before the business is ready

Always put the agreement in writing. Spell out the amount, repayment schedule, interest if any, ownership terms, and what happens if the business cannot repay on time.

3. Business credit cards and 0% introductory APR offers

A business credit card can provide short-term access to cash for supplies, inventory, advertising, software, or other purchases.

Some cards offer a 0% introductory annual percentage rate for a limited period. This can be useful when you know exactly how you will repay the balance before the promotional period ends.

Best for

• Smaller purchases
• Short-term cash-flow gaps
• Founders with good enough personal credit to qualify
• Expenses with a clear and near-term return

Pros

• Fast access to funds
• May earn rewards or provide purchase protections
• A 0% introductory period can reduce interest temporarily
• Can help establish business credit, depending on how the account is reported

Cons

• The interest rate may rise sharply after the introductory period
• You may be personally responsible for the balance
• High balances can hurt your personal credit
• Credit limits may not be large enough for major business needs

Treat a 0% card as a bridge, not permanent startup capital. Before using one, calculate how much you need to repay each month to reach a zero balance before the promotional rate ends.

4. An unsecured business line of credit

An unsecured business line of credit allows you to draw funds as needed, repay what you use, and potentially access available credit again.

Unlike a term loan, you do not necessarily receive one large lump sum. That makes a line of credit useful for changing expenses such as payroll, inventory, repairs, or seasonal demand.

Best for

• Businesses with recurring revenue
• Owners who need flexible working capital
• Companies that want to manage cash flow instead of funding one specific purchase
• Businesses that have been operating long enough to show deposits and sales

Pros

• You pay based on the amount you use
• Funds may be available for multiple business needs
• Can help cover timing gaps between expenses and customer payments
• May be easier to manage than taking several separate loans

Cons

• Rates and fees vary widely
• Available credit may change based on business performance
• Frequent borrowing can create a cycle of debt
• A newer business may not qualify immediately

Some alternative lenders work with businesses that have been operating for at least six months and generate $100,000 or more in annual revenue. That means limited history does not always disqualify you.

Brickstone Capital’s contact page is a place to start a conversation about working capital and flexible funding options. Brickstone offers working capital financing, equipment financing, and Brick LOC, a flexible revolving line of credit with no document requirements.

5. Equipment financing

If you need a vehicle, commercial kitchen equipment, tools, machinery, technology, or other revenue-producing assets, equipment financing may be a better fit than a general-purpose loan.

The equipment itself often helps support the financing request. Instead of borrowing for general expenses, you are funding a specific asset that can help the business generate revenue.

Best for

• Contractors buying vehicles or tools
• Restaurants purchasing kitchen equipment
• Retailers adding point-of-sale systems or display equipment
• Service businesses investing in equipment that increases capacity

Pros

• Loan proceeds are tied to a specific business need
• Terms may extend over several years
• The equipment may generate revenue while you repay the financing
• Can preserve cash for payroll and daily operations

Cons

• You cannot usually use the funds for unrelated expenses
• The equipment may serve as collateral
• Older or specialized equipment can be harder to finance
• You are still responsible for payments if sales are lower than expected

Before applying, estimate how much additional revenue or savings the equipment could create. A new asset should improve your business, not simply add another monthly bill.

6. SBA microloans and small business grants

SBA microloans are designed for smaller funding needs. According to the U.S. Small Business Administration, the program offers loans of up to $50,000 through approved nonprofit intermediary lenders.

They can generally be used for working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. The specific requirements, rates, collateral rules, and approval timeline depend on the intermediary lender.

Best for

• Founders who need a smaller amount of capital
• Businesses with a clear plan and realistic projections
• Owners who are willing to provide more documentation
• Startups that may not qualify for a traditional bank loan

Pros

• Structured for smaller businesses
• Can be used for several startup and operating needs
• May be more accessible than a larger bank loan
• Community lenders may provide guidance during the process

Cons

• Approval is not automatic
• You may need a business plan and financial projections
• Funding can take longer than online financing
• Personal guarantees or collateral may be required

Small business grants are another possibility, but they need to be viewed realistically. Grants do not need to be repaid, yet they are competitive, often slow, and usually limited to specific industries, locations, founder groups, or business goals.

They also rarely cover broad operating costs such as ongoing payroll or general cash-flow shortages. Use Grants.gov and local economic development resources to look for legitimate opportunities. Never pay a company that guarantees you a grant.

7. Revenue-based and alternative business financing

Revenue-based financing and other online lending products are designed for businesses that may not fit traditional bank requirements but can show consistent sales or deposits.

With revenue-based financing, repayment may be tied to a portion of your business revenue. Other online lenders may offer working capital based on bank activity, sales volume, time in business, and overall cash flow.

Best for

• Businesses with regular monthly revenue
• Owners who need funding quickly
• Companies with imperfect credit
• Businesses that have been turned down by traditional lenders

Pros

• Application and approval can be faster
• Some lenders offer decisions in 24–48 hours
• Underwriting may consider revenue instead of only credit scores
• Funds may be used for general working capital

Cons

• The total cost can be higher than a traditional bank loan
• Frequent payments can affect cash flow
• Revenue-based payments may increase as sales grow
• Offers can vary significantly between lenders

Read the full agreement before accepting any offer. Look at the total repayment amount, payment frequency, fees, personal guarantees, and what happens if revenue slows.

How to choose the right funding option

Start with the use of funds:

• General cash flow or payroll: Consider a working capital loan or business line of credit.
• Equipment or vehicles: Compare equipment financing.
• A small, short-term purchase: A business credit card may work if you can repay it quickly.
• A pre-revenue business: Look at savings, friends and family, grants, or an SBA microloan.
• A business with steady sales but limited history: Explore alternative business financing and revenue-based options.
• A larger, long-term expansion: Compare SBA loans and other term financing.

Imperfect credit and limited operating history are not automatic disqualifiers. They may affect your available options, pricing, and loan size, but lenders often look at more than a credit score.

Practical next steps

1. Write down exactly how much you need and what it will pay for.
2. Separate one-time expenses from recurring cash-flow needs.
3. Review your personal and business credit reports for errors.
4. Organize bank statements, revenue records, tax returns, and basic projections.
5. Compare total repayment costs, not just the monthly payment.
6. Apply with lenders whose requirements match your business stage.
7. Keep a repayment cushion for slower months.

The goal is not to find the biggest amount of money available. It is to match the right funding product to the right business need.

If your business has been operating for at least six months and generates $100,000 or more in annual revenue, contact Brickstone Capital to discuss straightforward working capital, equipment financing, or flexible line-of-credit options.

Phone: 919-641-1046
Email: brickstone919@gmail.com