Accessing Capital

By Suzanne Specht

Accessing capital is a crucial aspect of running a small business, and it involves understanding various financial options and strategies. Here are some key points to consider:

Business Plan:

Before seeking capital, create a comprehensive business plan that outlines your business goals, target market, financial projections, and how you plan to use the capital. A well-thought-out plan increases your credibility with potential lenders or investors.

Types of Capital:

  • Debt Financing: This involves borrowing money that needs to be repaid with interest. This can include bank loans, credit cards, or lines of credit.
  • Equity Financing: This involves selling a portion of your business in exchange for capital. This can include angel investors, venture capitalists, or crowdfunding.
  • Family/Friends/Alternative Sources: Some businesses may get funding from relatives or friends. Additionally, alternative sources like crowdlending, credit cards, HELOCs, or 3rd party loans are options.


Maintain a good credit history for yourself and your business. Lenders often consider personal and business credit scores when evaluating loan applications.

Financial Statements:

Keep accurate and up-to-date financial records. Lenders will typically request financial statements, including income statements, balance sheets, and cash flow statements, to assess your business’s financial health.


Be prepared to offer collateral, especially for traditional bank loans. Collateral provides security to the lender in case the business is unable to repay the loan.


Build relationships with potential investors, lenders, and other entrepreneurs. Networking can open doors to funding opportunities and provide valuable advice.

Government Assistance:

Explore SBA loans that offer financial assistance to lenders which in turn offer financing to small businesses.  Also, Government agencies might provide federal, state, and local contracts to assist in business expansion.

Online Lending Platforms:

Consider alternative lenders or online platforms that provide quick access to capital. These platforms often have less stringent requirements compared to traditional banks.

Financial Advisors:

Seek advice from financial professionals who specialize in small business finance. They can help you navigate the complexities of funding and provide valuable insights. Contact your SBDC at Florida Gulf Coast University for a confidential no-cost consulting session.

Terms and Conditions:

Understand the terms and conditions of any financing option. Pay attention to interest rates, repayment schedules, and any covenants or restrictions associated with the funding.

Repayment Plan:

Develop a clear and realistic plan for repaying the borrowed funds. Lenders and investors want to see that you have thought through how the capital will be used and how it will generate returns.

Continuous Monitoring:

Regularly monitor your business’s financial performance and adjust your capital strategy accordingly. This ensures that you can make informed decisions about future financing needs.


Remember that the best financing option for your small business depends on various factors, including your industry, business model, and financial needs. It’s often beneficial to consult with financial professionals or business advisors to tailor a strategy that suits your specific situation.

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