How do I get Small Business Working Capital?

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  • Written By: Felicia Dye
  • Edited By: Heather Bailey
  • Last Modified Date: 25 January 2020
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If you believe you are in a financial position to do so, you may want to begin your search for small business working capital by applying for a loan. You can also apply for grants, solicit investors, or attempt to raise the money through other business ventures. One thing to remember, however, is that you should not limit yourself to a single option.

Many people who need small business working capital seek loans. If you qualify to borrow money from a bank, this may be one of the fastest options. It may also be the option that provides you with the most money from one source. If you are unable to get money from a financial institution, you may still have an opportunity to get a loan. You can approach other businesses that may be willing to lend you the money if the terms of the return are favorable.

You could also consider getting your small business working capital from other personal ventures. Many successful individuals have built one business by using another to finance it. Even if you do not have access to another business that can generate the necessary revenue, you may be able to raise the money you need by getting a job.


Searching for investors is another option. This may seem similar to obtaining a loan, but it is actually quite different and the proposition should be presented differently. Investors are usually people who contribute to a business with the motive of being engaged with it for an extended period of time. These individuals are often more accommodating about repayment than a financial institution, which is likely to impose a strict repayment schedule.

There may be grants that can help provide the small business working capital that you need, but finding these may not be easy. There are several ways you can approach your search that may help you find grants that apply to you. If you are a minority or a foreigner, there may be grants specially designated for small business owners like you. You can search for grants provided by large businesses in the same industry. Also, remember to look for funds that are available from local sources encouraging local business growth.

Do not limit yourself to a single option. Even if you apply for grants, you can still try to find investors or apply for loans. You should do this in case you receive a promise for funds that are not delivered. The result may be that you receive small business working capital from multiple sources.



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