- Low credit score requirements
Personal funding can be a viable option for your small business needs, but doing it successfully requires you to thoroughly calculate all of your costs, so that you don’t run out of money before your business can support itself. Your goal should be to finance your business so it can stand on its own, without co-mingling personal assets and credit. This will be important as you provide financial reporting to tax agencies, potential lenders, and other entities. There are a few different options when it comes to personal funding:
If you plan to ask your friends and family for funds, take time to think through what you’re asking for, and how you formalize this agreement.