Starting a business takes capital, but not every entrepreneur wants to give up equity or bring in outside investors. The good news? You don’t have to. There are smart, strategic ways to fund your business that give you full control without relying on venture capital. In this guide, we’ll break down five of the best ways to fund your business without investors—from bootstrapping to alternative financing options. Whether you’re launching a startup or scaling an existing business, these methods will help you get the funding you need without giving up ownership.
1. Bootstrapping: The Self-Funding Strategy
Best for: Entrepreneurs who want to retain full control and have some initial savings. Bootstrapping means using your own money, revenue, and resources to grow your business. It’s one of the best ways to stay lean, independent, and debt-free while testing your business idea.
How to Bootstrap Successfully
- Start Small: Avoid big expenses and only spend on essentials.
- Reinvest Profits: Instead of taking money out of the business, put it back into growth.
- Minimize Costs: Use free tools, remote teams, and lean operations to keep expenses low.
If you don’t have personal savings, consider freelancing or consulting in your industry to generate cash flow while building your business.
Example: Shopify, one of the largest eCommerce platforms, started as a bootstrapped business before scaling into a billion-dollar company.
Starting from $17/month
Key Features
AI-powered product recommendations and marketing
Advanced fulfillment and inventory management
Seamless omnichannel selling
Why We Recommend It
Storage and Bandwidth:
Unlimited storage allows you to upload as many products and images as needed
Unlimited bandwidth means your site can handle many visitors and lots of activity without slowing down
Extras and Inclusions:
Secure, integrated payment gateway, with transaction fees waived if you use Shopify Payments
Access to an extensive app store to add features and functionality
Built-in tools for SEO, marketing, and analytics
Pros & Cons
- Comprehensive store management tools
- Wide range of themes and apps
- Excellent 24/7 customer support
- It can get expensive with additional apps and transaction fees
- Limited SEO capabilities compared to other platforms
2. Business Loans & Lines of Credit
Best for: Businesses that have revenue and want fast access to capital without giving up equity.
If you have a business with a steady income, a business loan or line of credit can be an excellent way to get funding. Unlike investors, lenders don’t take ownership—they just require repayment with interest.
Best Business Loan Options
- SBA Loans: Government-backed loans with low interest rates.
- Traditional Bank Loans: Require strong credit and financial history.
- Alternative Lenders: Fast approvals with flexible repayment terms.
Best Business Line of Credit Providers
- Bluevine – Offers credit lines up to $250,000 with fast approvals.
- Fora Financial – Provides short-term business loans up to $1.5M, even for businesses with lower credit scores.
Key Features
Fast business funding with flexible repayment options
No strict credit score requirements
Loans and cash advances up to $1.5 million
Why We Recommend It
Fora Financial helps small businesses get quick funding without the hassle of traditional banks. It’s a great option for businesses that need fast cash to grow, cover expenses, or manage cash flow
Pros & Cons
- Quick approval and funding process
- No collateral required
- Flexible repayment terms
- Higher interest rates than traditional loans
- Not ideal for startups with no revenue history
If you’re worried about high interest rates, look for SBA-backed loans, which have lower costs and longer repayment terms.
Example: Many eCommerce brands use short-term business loans to fund inventory purchases and scale their operations quickly.
3. Crowdfunding: Raising Money from the Public
Best for: Startups with a strong brand or product that people are excited about.
Crowdfunding lets you raise money from customers, supporters, and backers without giving away equity. It’s an effective way to test your idea while securing funding.
Types of Crowdfunding
- Reward-Based Crowdfunding: Platforms like Kickstarter and Indiegogo allow you to raise money in exchange for early access to products or special perks.
- Equity Crowdfunding: Instead of giving away rewards, platforms like Republic and StartEngine let you sell small shares of your business to investors.
- Donation-Based Crowdfunding: Websites like GoFundMe allow people to contribute without expecting anything in return.
How to Run a Successful Crowdfunding Campaign
- Create a compelling story that explains why your business matters.
- Offer attractive rewards to backers.
- Promote your campaign through social media, email lists, and PR.
Set a realistic funding goal and focus on creating a strong marketing campaign before launching.
Example: Pebble, a smartwatch brand, raised over $10 million through Kickstarter, making it one of the biggest crowdfunding success stories ever.
4. Revenue-Based Financing
Best for: Businesses with consistent sales looking for non-dilutive funding.
Revenue-based financing (RBF) is a great alternative to traditional loans or investors. Instead of fixed monthly payments, you pay a percentage of your revenue until the loan is repaid.
Benefits of Revenue-Based Financing
✔ No equity required – You keep full ownership of your business.
✔ Payments adjust with revenue – If you make less in a given month, you pay less.
✔ Fast funding – Many RBF lenders approve applications within a few days.
Top Revenue-Based Financing Companies
- Fora Financial – Provides quick capital for businesses with fluctuating revenue.
- Shopify Capital – Offers funding to Shopify store owners based on their sales history.
This works best for businesses with consistent cash flow—like subscription services or eCommerce stores—that need capital to scale.
Example: Many SaaS companies use RBF to grow without giving up ownership to venture capitalists.
5. Business Grants & Competitions
Best for: Startups in specific industries looking for free funding.
Business grants are one of the best ways to get funding because you don’t have to repay the money. They’re typically awarded by governments, corporations, and nonprofit organizations to support small businesses.
Where to Find Business Grants
- Grants.gov – Federal grants for small businesses.
- Small Business Innovation Research (SBIR) Program – Funding for tech and innovation startups.
- Hello Alice – Grants for minority and women-owned businesses.
Business Pitch Competitions
If you have a unique product or startup idea, you can also apply for business competitions that offer cash prizes.
- TechCrunch Startup Battlefield – Startups pitch their business for funding.
- Amazon’s Small Business Grant – Supports small eCommerce brands.
Grant applications are competitive, so apply for multiple grants to increase your chances of approval.
Example: Many minority-owned businesses have secured six-figure grants to help fund their operations without taking on debt or investors.
Final Thoughts: How to Fund Your Business Without Investors
You don’t need venture capital to start and scale a successful business. With the right strategy, you can fund your business without giving up ownership or control.
Which Funding Option is Best for You?
✔ If you want to stay debt-free – Bootstrap your business or apply for grants.
✔ If you need fast capital – Consider revenue-based financing or a Bluevine business line of credit.
✔ If you have an innovative product – Launch a crowdfunding campaign on Kickstarter.
✔ If you need working capital – Fora Financial’s short-term business loans can help.
By choosing the right funding strategy, you can grow your business on your terms while keeping 100% ownership.
