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Creative Ways To Finance Your Small Business When Revenue Is Low

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In a perfect world, small businesses would have an endless stream of revenue coming in and there wouldn’t be need to worry about financing. However, we all know that’s not the case. Sometimes businesses have to get creative when it comes to their small business financing, especially when revenue is low. This blog post will discuss four creative ways to finance your small business!


Bootstrapping is when a business finances itself without outside help. This can be done by using personal savings, credit cards, car title loans, or even loans from friends and family. Bootstrapping is a great option for businesses that are just starting out and don’t have much revenue coming in yet. One downside of bootstrapping is that it can be difficult to scale a business if it is successful.

This is because the business will likely be reliant on personal funds, which can be limited. Bootstrapping can also be risky, as the business owner will be personally liable for any debts incurred by the business. If you decide to go the bootstrapping route, create a solid business plan and budget. This will help you track your progress and make sure you are staying on track.


Crowdfunding is when businesses raise money from a large group of people, usually through an online platform. Kickstarter and Indiegogo are two popular crowdfunding platforms. Crowdfunding can be a great method for small business financing, especially if it is a new or small business with limited revenue. For crowdfunding, businesses often have to give up equity in order to raise funds.

This means that the business owner will likely have less control over the business. Additionally, businesses may need to offer rewards or perks to donors, which can add to the project’s cost. If you decide to go the crowdfunding route, be sure to:

  • Create a compelling campaign that will attract potential donors
  • Be prepared to answer any questions that donors may have about your business
  • Deliver on any rewards or perks that you offer once you’re successful 

Small Business Loans

Small business loans are another option for businesses that need financing. There are many different types of small business loans, such as SBA loans, lines of credit, and term loans. Small business loans can be a great option for businesses that have been in operation for a while and have a good track record. However, they often have to be repaid with interest.

This can be a burden for businesses that are already struggling financially. Additionally, some lenders may require collateral to qualify for a loan. If you decide to apply for a small business loan, be sure to shop around and compare rates from different lenders. You will also need to have a solid business plan and financial statements to qualify.

Venture Capital

Venture capital is when businesses receive investments from venture capitalists. Venture capitalists are typically interested in small businesses with high growth potential, mainly startups. However, businesses often have to give up a lot of equity to receive funding. This means that the business owner will likely have less control over the business.

Additionally, venture capitalists may require a seat on the board of directors or a say in major decisions. If you decide to seek venture capital, be sure to:

  • Research potential investors and pitch your business in a way that will attract their interest
  • Be prepared to give up a portion of ownership in your business.


Factoring is a type of small business financing that allows you to sell your accounts receivable to a third party at a discount. This can be a great option if you’re struggling to collect payments from your customers. However, it’s important to note that factoring can be expensive, and it may not be the best option for all businesses.

Here are some additional tips for financing your small business when revenue is low:

  • Be creative: There are many different ways to finance your small business. Don’t be afraid to think outside the box and come up with a plan that works for you.
  • Do your research: Before you take out any type of financing, be sure to do your research and understand the terms and conditions. This will help you avoid any surprises down the road.
  • Get help from a professional: If you’re not sure how to finance your small business, consider getting help from a financial advisor or business consultant. They can help you develop a plan that meets your specific needs.

Don’t Be Limited to These Options Alone

These are only four of the many creative ways you can finance your small business when revenue is low. However, don’t be limited to these options alone. Numerous other small business financing methods are available, so do your research and explore all avenues before making a decision. Whatever route you take, remember that it’s important to have a solid business plan before seeking funding. This will give you a greater chance of success and help you avoid making costly mistakes.

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