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We have written about how to get startup capital or finance for you business How To Start A Startup- Raising Money-Part V, How To Start A Startup- Raising Money-Part VIII. Many reader told me that it helped them to understand the processes of starting a startup and getting the money needed. Finding the money to finance a startup is really difficult and raising money to finance a startup during a time of recession is really impossible. This is the best time to start a busiensss, as talented people are available and good office space is also available at a lower cost. But still finding the lesser finance needed may be very difficult for you. Here we offer you 4 sources that you can tap to start your business TODAY.

1. Borrow from yourself. You know most of the businesses are started with own capital. Entrepreneurs use their savings for about 30 percent of their initial startup capital. You may hae money in your bank account, but just don’t take the money. Lend the money you have to your business. Later when the business earns money, pay yourself back. For a low amount there is no problem in repaying yourself back with the revenue proceeds or future investor proceeds.

2. Borrow from family and friends. You can ask for a loan from friends and family members. Take it as a loan and pay an interest on it. To help yourself, you can reduce the interest rate a bit than the market rates (2-3 pecent lower than the market rate). Offer them a rate which is slightly higher than (1 percent to 2 percent higher) than the high yield savings rate which will benefit them.

3. Borrow from people who are patient. Find people who are patient and can lend you money for a longer duration. Do not take a loan that you need to repay within a short time. As you are stating a startup, it will be very difficult to forecast the revenue and so never keep any short term financial obligation. Within your network of mentors, business associates, suppliers and friends, you will find people willing to offer a long duration loan to you. You can also take grace period for repaying the loan.

4. Borrow online. Now if you can do everything over the Internet , then why not borrowing. Now the Internet offers many alternatives for financing of new small-businesses. Fro example tryOn Deck Capital , here people who lend you the money look at your cash flow rather than your credit score and tax returns. Here you can pay small amounts daily instead of monthly or yearly huge payment. There are other websites and firms which offer online loans. Search Google to find some “person to person loan” providing companies.

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