Be Creative When Raising Business Capital

If you own a business, you’ve probably already learned a lot about raising capital. When you first started, the chances are that you beat the bushes to secure financing for your idea and do a successful launch. Perhaps you’re once again facing a need for funding to move to the next phase of growth. That means you need to put your creative powers to work.

What are the most popular techniques owners and entrepreneurs use to fund a business and locate additional capital? In addition to old standbys like using credit cards, there are life settlements, angel investors, crowdfunding, and other strategies that have the potential for adding to your cash account. The following are just a few of the creative ways that independent business owners use to finance their operational activities.

Credit Cards

Be careful when using personal credit cards to finance business activities. Ideally, you would want to have a company card, but not every owner has access to as much credit on their corporate plastic as they do on their personal cards. In any case, only use this method as a last resort and pay the debt down as quickly as possible to minimize interest expenses.

Life Settlements

A life settlement is a relatively simple process in which you sell your life insurance policy for cash. The best way to get started is to review a guide that explains the way everything works. In short, you no longer own the policy or make premium payments on it. In exchange for giving up ownership and future death benefits, you receive an immediate cash payment.

Often, the amount is quite substantial and can make a difference for business owners who are short of working capital. There are no restrictions on what you can do with the proceeds from a life settlement, but you might have a tax obligation if your payout represents something more than your basis in the policy. That’s why it’s essential to read a guide and find out not only how much you can get but how soon you can access the money.

Angel Investors

Consider searching for angel investors, those individuals who specialize in financing small businesses with their own funds. Most angels are part of a network, which means you can work with a consultant and hook up with potential investors that way. Be ready to pitch your cause and explain why you’re looking for additional capital. Angels need motivation and a solid rationale to back a company.


Crowdfunding has been around for more than a decade but has only recently become both an effective and popular way to raise money. Individuals and companies run crowdfunding campaigns via dedicated platforms. All uses tend to focus on a single product, service, or activity they’re aiming to pay for. Entrepreneurs gain traction by highlighting short-term projects, new inventions, or unique services they want to bring to fruition. If you opt for crowdfunding, work with a specialist who can show you how to construct pages, write compelling copy, and design promotional campaigns that bring the most attention to your cause. In exchange for donations, you can offer credit on future purchases or ownership interest in your company.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.