Ways to Raise Starting Capital for Business

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Video Credits: Entrepreneur Philippines via YouTube


Image Credits: Sharon Lopez via Bitlanders

Do you have the business idea but you lack funds? Here are the things that you can do in order to raise the fund you needed to start up with your business.  


Image Credits: Free-Photos via Pixabay

A start-up fund or starting capital is one of the most important components in starting up a business. Oftentimes, great ideas failed to materialize due to lack of funds or inability to find an institution which could provide help. It is a common knowledge that even how small or big our business, we still need to spend especially for the startup and working capital.


Image Credits: Alexas Fotos via Pixabay

One of the best strategies that we may be able to adopt is "to start small". Meaning, we can start a business depending on how much available fund we have. This way, we could refrain from borrowing funds and we can just maximize the use of our current funds. The profit we earned will then be added to the current capitalization, thus we are growing the business on its own. 

However, this strategy may only be applicable to some business models such as buy-and-sell business, wherein you need to buy the product and you can automatically use the money after you sold the items.  

How to Raise Fund for Business Startup


Image Credits: Geralt via Pixabay

For some business models, it may not be possible especially if we need pieces of equipment and buildings before we could start our business. For these types of business model, we can possibly adopt the following actions in order to raise the needed capital funds. 

>Raise Capital From Family and Friends


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Presenting a well-thought-of business plan to family and friends will certainly help us in raising the needed fund for a business. Most people are looking for something they can put their extra funds without having to participate in the management. There are also some individuals who want to have participation in running the business. Before presenting the business idea,  we must be ready with a detailed business design in order to convince our family and friends to share fund. This should include information such as, how much they will gain, how profitable is the business, how long will they be able to recover their investment and other matters including risks. 

We should be ready even with the small details and everything should be in writing in order to avoid future problems and misunderstandings. Moreover, let us remember that before we approach other people, our family, and friends might just be there and only waiting for you to offer them the business proposal. 



Image Credits: Tumiso via Pixabay

Crowdfunding generally refers to a method of fundraising whereby money is sourced from a large number of individuals usually through an online platform.

Source: Manila Bulletin

Crowdfunding is an online platform that serves as a middleman between the project initiator and the capitalist. These platforms served as a meeting ground for presenting creative ideas with the purpose of generating fund and the investors who are willing to support the ideas. Generally, the platform has three (3) parties involved; the owners of the online platform, the businessmen providing funds and the individuals with the business proposal.

The project initiator would present the business idea through the platform and the investor would choose from among the presented proposals. Everything will be done through the use of the online platform.

Here are some of the popular crowdfunding sites in the Philippines which you may visit for crowdfunding purposes. 


>Angel Investors


Image Credits: Tumiso via Pixabay

Angel Investors are wealthy businessmen who invest in the company in exchange for an equity capital in the company. This could be done through shares or stocks. Angel Investors may have direct control over the business depending on the number of shares they owned. 

Angel investors may also be a part of an online platform. But unlike the crowdfunding platforms which the project initiator would present a business idea, it is the other way around with the angel investors platforms. Here, the businessmen are the one to post their intention to provide the fund for qualified recipients. 

Here are some of the sites which you could visit to find Angel investors:




Image Credits: Nattanan23 via Pixabay

Microfinancing is another method of obtaining fund to support our business goals. This is a way of providing funds for business purposes to poor individuals who have no access to bank services. In most instances, microfinance is being offered to a group of individuals making a loan with shared responsibility. Meaning, every member of the group has a responsibility to ensure that other members are complying with the agreement as set forth in the contract. 

The goal of this project is to extend help to small-scale businesses by providing an additional capital funding for startups or business expansions for a lower interest.

Currently, there are nearly a thousand registered microfinancing entities in the Philippines. 

>Government Programs that Offer StartUp Capital


Image Credits: Geralt via Pixabay

There are different government institutions that are offering various programs to address the current needs of individuals in terms of capital funding requirements of their business. the Department of Trade and Industry is the main agency that provides technical assistance in relation to business regulations and other matters related to business. Though they may not be able to provide direct funds since their main concern is the welfare of the consumers, we can approach them for technical assistance and information on how to secure fundings from other institutions. 


Image Credits: Alexander Stein via Pixabay

In the Philippines, government banks are providing assistance to small entrepreneurs in their funding requirements.  Here the banks where we can visit for the needed fund for our business startup.

  • BDO
  • BPI


On the final thought...

Starting a business requires an excellent idea backed up with a well-written business plan. Saving the needed amount for our business start-up is still the best way to start a business. Though, in the absence of such, getting the help of the right company or people would also be helpful. 

Thank you for reading. I hope this blog post provided the necessary information you need in your business endeavor.

Meanwhile, here is another video that could help you in acquiring loans for small business in the country. 

Video Credits: Unity TV News and Rescue via YouTube

DISCLAIMER: The views and opinions expressed in this blog post are that of the author and does not in any way represent the agency or department she currently belongs.

ADDITIONAL NOTE: The sites mentioned in this post are for information purposes only and links are provided for easy access. The author does not receive any remuneration from the said companies or sites.


Written for Bitlanders
by Sharon Lopez

Date: July 05, 2018

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