 TITLE: How Do You Get a Loan to Start a Business? CONTENT: Additional Business Funding Options\n-----------------------------------\nIf a traditional business loan isn't in the cards for you and your startup, alternative funding may help get your business up and running. The most prevalent option here is self-funding. By using your savings or investments, you may be able to \"bootstrap\" your way to loanworthiness in a few years—or bypass the need for a loan altogether. Just be sure not to wipe out savings for your retirement and emergency fund since doing so can leave you high and dry if your business venture doesn't work out.\nHere are a few alternative ideas you might try for funding your startup outside of traditional lending:\n*   **Friends and family**: If people close to you are willing and able to lend or invest, you can get your business off the ground without a long history or an impressive business credit score. Before you commit to this option, know that defaulting on a loan from a loved one can have major consequences on your personal relationship with them. Get your agreement in writing, and hold up your end of the deal.\n*   **Venture capital**: Courting an early investment from a venture capital firm or angel investor comes with its own challenges and rewards. Venture capital investors are typically looking for an equity stake and an ongoing role in your business. They favor fast-growing businesses with high growth potential. On the upside, venture capital investment isn't debt; you're working with investors and not lenders.\n*   **Crowdfunding**: You can hatch your innovation or new business on Kickstarter or one of many other crowdfunding platforms. Visit each prospective site to get a sense of which offers are successful and how they're structured. Also pay attention to terms: Know what happens if your deal falls through.\n*   **Vendor financing**: If you can sell a vendor on the merits of your business, they may be willing to work with you on financing—by offering credit, a loan or an investment in your company. This may be a viable way to finance equipment or create inventory if you're strapped for cash.\n*   **Personal loans or credit**: If all else fails and you need an additional loan or credit, you may consider using a personal loan or even your personal credit cards to fund your new venture. Just be wary about the risk you're assuming when you use personal credit to fund a new business. If you rack up a large amount of personal debt and the business fails, you could be in real financial trouble. If you use your home or other assets as collateral, you can lose these as well. Believe in yourself but think critically before making this move. END