If you are reading this article, it is likely you have exhausted traditional funding options for your business as VCs, angel investors, and friends and family have not provided capital. Securing financing can be extremely challenging given today’s economic environment with cut-throat competition among startups. However, alternate business financing options exist for entrepreneurs struggling to keep their venture afloat. These unconventional methods can be used to explore alternative business financing when traditional avenues have been exhausted.


This only applies if you have products to offer. You can sell your receivables at a lower price to get cash upfront. We don’t recommend using it unless it’s your last resort, though. If you have poor line of credit and need money urgently — you may use it but be aware that it is a very expensive fundraising method.

Securing a Loan

You can obtain a loan through 3 different sources to get by for the next few months:

  • BankStandard bank loans, a lot of paperwork and some form of collateral involved.
  • Microlender:Unable to get a bank loan due to no collateral? A microloan can help disguise. Micro-lenders are non-profit organizations that offer loans up to $35,000 at an interest rate. Consider a microloan if urgently needing equipment or materials. It is not a long-term financing solution.
  • Credit Card:Using your credit card for large business expenses is very risky. It can lower your credit score and trap you in serious debt. Only use a credit card if sure you can pay the bill when due, like if overseas payments will arrive soon.

 Tap into Your 401(k)

Have you been stuck in a 9-5 job for years but now want to start a business? Your accumulated 401(k) can fund your venture.

Tapping your 401(k) is complex though. You will need a legal expert to avoid tax penalties. Since it’s retirement funds, help is required to set up a C Corporation and new retirement plan.

Try Crowdfunding

A popular method to raise funds, especially if your product idea is quirky and creative — crowdfunding can be the way to go if you are not looking for long term funding. A website like Kickstarter.com can help you set up a campaign with a monetary goal and duration. People who like your product will help you fund it by donations — in exchange for receivables. For instance, if you are looking to produce shoes, you will need to send those to them when your campaign ends.



A far-superior cousin of ICO, STO (Security Token Offering) is a reliable way to secure funds without running into legal troubles and the mayhem surrounding ICO.

As it is actually backed by assets or revenue of the company rather than a vague idea, STO is essentially like giving out company shares. It is also not susceptible to various pump-and-dump strategies associated with ICO and is in fact very distinct from it.

Entrepreneurs have already raised millions of dollars using this method, and industry leaders confidently believe it will take them into a whole new dimension of fundraising. Become a pioneer and join the world of digital assets with Andriotto Financial Services – get in touch with our expert team.

alternative business financing

At AFS, we are passionate about fostering innovation and empowering ambitious minds to flourish. Our mission is to provide best-in-class financial services for traditional and crypto deals, exploit European grants, and use quantitative methods to improve clients’ performance. We aim to help our customers unlock their full business potential.

Are you looking to fund your next venture or unlock grant opportunities?

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