Raising sufficient funds is critical for launching a small business and laying the groundwork for long-term success. However, it can be an especially time-consuming and challenging process, particularly for the unemployed who don’t have a steady source of income.

But don’t despair if you’re in the same situation. There are still plenty of options available for funding your small business. You just need to get creative and be willing to put in some extra effort to succeed. There’s no need to give up on your dream of owning your own business just because you don’t have a job.

Check out the cheat sheet that lists seven start-up funding options to help you raise capital for your business.

No Income Loan

Even if you don’t have a job, a loan can be a viable option for funding your business. The two most common types of loans for no income borrowers are unsecured personal loans and no-income loans. They are loans that can be approved by a lender such as  creditninja.com online loan lender without an income verification process and can be used for various purposes, including starting a business.

Unsecured personal loans are typically easy to qualify for. The main downside is that they usually come with shorter repayment terms. On the other hand, no-income loans are loans that are specifically designed for people who don’t have a job or a steady source of income.

But they tend to have higher interest rates and require collateral, so be sure to consider all your options before taking out one.

Credit Cards

Credit cards have become an essential part of starting a new business, and they are now the third most popular source of cash for small businesses. They are a good source of business financing and can be a good option if you have a high credit limit and can pay off your balance quickly.

There are numerous business credit card offers on the market, so don’t feel obliged to apply for the first one you come across. Instead, pay close attention to the benefits they provide and consider whether they would benefit your business.

Personal Savings

When starting a business, your first investor should be yourself, either with cash or collateral on your assets. Personal savings are the most common funding source for small businesses because it’s the most convenient and cost-effective method.

The benefit of using your savings to finance your own business is that you’ll know precisely how much money is sufficient to run your business and won’t have to waste time securing other forms of funding from investors or banks. Also, it gives you far more control than other financing options, and you’ll retain full ownership of the company.

Venture Capitalists

Venture capitalists are investors who invest a significant amount of money – typically more than an angel investor would – in exchange for equity in the business. Venture capitalists can be highly beneficial to business owners because they provide a steady and consistent revenue stream.

Also, venture capitalists bring indispensable resources and business knowledge, which they share with entrepreneurs to help them succeed. If you’re a start-up business with huge potential and are willing to give up some equity in your business, venture capital funding is a great option to ensure financial support and guidance.

Angel Investors

Angel investors are high-earning individuals who provide funding in exchange for a stake in your company. They collaborate in network groups to screen proposals together before investing, and they also offer valuable mentoring or advice in addition to funds.

However, unlike venture capitalists, angel investors are wealthy, self-sufficient individuals who choose to invest a portion of their wealth in profitable businesses at their early stages. Remember that angel investment is not appropriate for businesses that want to possess complete control of their operations.

Business Incubators

Business incubators are specialized assets designed to assist business owners in preparing to seek investment. An incubator assists entrepreneurs in developing solid business ideas, developing business plans, and working on a flexible work schedule until the business idea or product is ready to pitch to investors.

In addition, business incubators offer mentoring as well as a small seed investment in exchange for equity in the start-up. And businesses that receive this type of assistance frequently operate in cutting-edge industries such as biotechnology, information technology, multimedia, and industrial technology.


Grants are an excellent source of funding for some businesses, though they can be difficult to obtain. Besides, grants from the government may be available for businesses focused on science or research.

Because grants are free money that you don’t have to pay back, the competition for them is fierce because everyone wants free money. Grants can range from a few hundred dollars to hundreds of thousands of dollars, but most are less than ten thousand dollars.

Final Thoughts

Running your own business is as exciting as it sounds, but it’s also extremely difficult. And raising capital is a new and uncertain experience for early-stage entrepreneurs.

So as you look for the best funding options for your new business or expand an existing one, you’ll notice that some are more complicated and time-consuming, while others may only offer a small amount. Therefore, you must conduct your research, weigh the pros and cons of numerous options, and seek professional help at the appropriate time.