Andriotto Financial Services

How to Finance Your Business When Traditional Methods Run Out

If you are reading this article, chances are that you have already exhausted your options: VCs are not working for you, Angel investors won’t listen to your game plan and your friends and family aren’t loaded enough to fund your business.

The truth is: It is getting extremely difficult to secure funding in today’s economic climate through traditional financing options. There are so many startups out there, so much competition — it’s almost a madhouse!

But don’t worry. If your startup is struggling to see another day, you can try these unconventional methods to get you out of the jam:


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: If you can’t get a bank loan due to lack of a collateral or for any other reasons — a microloan can be your blessing in disguise. Micro-lenders are essentially Non-profit organizations that offer small amounts of money (Up to $35,000 only) as a loan in exchange for an interest rate. It is where you turn to if you need new equipment or raw material urgently, and is in no way a long-term financing solution.
  • Credit Card: Before you even think about using your credit card to make an expensive business transaction, beware that it is VERY risky to do so. Not only does it have the potential to lower your credit score, but it can also trap you in serious debt. If you must, use this only if you know for sure that you will be able to pay the bill soon after the transaction, like if your over-shore payments are stuck and will be released soon.

 Tap into Your 401(k)

If you are one of those people who has been stuck in a 9-5 job for years, but now wants to quit to start their own business — your accumulated 401(k) can be your way out.

It can be a complex method, though — and you will need a legal expert to help you tap into it without a tax penalty. Since you are essentially using up your retirement funds, you will need help setting up a C Corporation and a 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 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.


How ICO, IEO and STO are changing the fundraising game: What is the Future of VCs?


Millions of dollars have already been raised using this method, and industry leaders are confident that it shall 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.