How To Start A Business Without A Bank Loan


Whether you’ve been knocked back by a bank or you’ve decided that you don’t want to start your business by extending deep into a line of credit, you’re going without a loan. It’s not the end of the world, nor should you treat it like one. If you think not having a loan available is an immediate dead-end, you might not yet have the resilience it takes to run a successful business. Either way, it never hurts to get a few ideas on how to start even without that leg-up.

Start It Yourself 

It’s entirely possible to start up a business without extra funding. Even if you’re not entirely sure what business you want to start, there are plenty of cheap business ideas to explore and find the one that suits you best. For as little as $2000, and even less, you can fully outfit a dog-walking service, a brand as an online social media specialist, and even a personal trainer. Start identifying your skills, your interests, and think of the most basic service you can start providing. Some funding will be essential to help you get started and begin the branding/marketing process, but there’s a lot you can do with a little. 

Ease Into It 

You don’t have to drop everything else, either. Starting a business is a big risk, doing it with no backup plan is even riskier. If you can tolerate long days, then running a business part-time alongside another job will you the chance to start exploring the business model and see if it’s viable without committing 100%. It also gives you the chance to get some experience under your belt to soften up the landing when you go for a full launch. 

Find Other Funding Opportunities 

The terms of a bank loan can be incredibly strict. They also don’t have some of the perks of the other funding alternatives available. You need some sort of plan to impress angel investors, for instance, but if you can, their expertise and potential as a mentor can give you an even better chance of success. With crowdfunding, your idea has to be innovative and immediately marketable, but you have the added bonus of not having to pay back the investment. 

Stay Lean 

Regardless of how you start a business, this is a good tip, but it’s even more important if you don’t have a loan to exhaust. Becoming a frugal business owner will help you survive storms that others can’t. For instance, looking at precision advertising and cost-effective organic marketing instead of expensive, wide-range ad blitzes. Using free software instead of paid office suites. Even going paperless when possible. Every time you think you have to spend money, use the vast wisdom of the internet to research cheaper options. Sometimes it’s worth investing, but many novice business owners have a habit of wasting money that you won’t be able to indulge. 

Budget Business

If you’re able to make it without a loan, then your business is already off to a better start than most and you’ve already proven yourself against your first challenge. It won’t be your last, but it’s certainly a good sign.





I hope you enjoyed this article about how to start a business even when the big banks say no to loans.

Interested in more articles about frugal finances?

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Published by Michael J Schiemer
Owner of Bootstrap Business
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