Some entrepreneurs may need to think outside the box to raise the capital necessary to make their businesses grow. Innovative funding practices are gaining popularity amid high-interest rates and tough eligibility requirements.  

Some creative ways for entrepreneurs to raise the capital they need in this changing market are: 


With the rise of technology in the global marketplace, crowdfunding has found its niche. For entrepreneurs looking to raise capital for their business pursuits, all that is needed is a sponsor- or sponsors- that are willing to endorse your dream. The internet makes it possible to reach a wide audience with an idea or message, so the many small investments create a larger increment that funds your project.  

Venture Debt 

Another way to raise capital in this fast-changing market is with venture debt. This refers to a loan that is secured by your business’ assets and incoming money. That is your revenues back the money that a lender is willing to give to you. Make sure that you have adequate cash flow and revenues to support such arrangements- and know that you will need to provide investors or lenders with proof of your incoming receivables.  


An additional creative way for entrepreneurs to raise capital is by factoring. This occurs when a business or brand- in this case, your company- sells your receivables and invoices to a lender, discounted, for money upfront. This provides the borrower with an immediate cash injection, easy and fast.  

This strategy may be best suited to those companies with a lot of business that can afford to operate while paying back a portion of receivables. Smaller businesses that are truly on a shoestring may not be able to survive these terms. Common payment arrangements may include paying 10% of your receivables back to the lender until the debt is paid.  

Want to find out more about creative and alternative approaches to funding your business? Talk to the professionals at Means Commercial Capital to learn more!