5 Best Sources of Funds for Business Startups

Once you have researched the market and written a business plan, you will need to think about acquiring funds. The US Small Business Associate even provides a fillable PDF spreadsheet you can download to calculate your startup costs.

You can get the funding you need to help open your startup if you use the right sources.

Your company deserves a chance to take off. If you need help backing your startup, keep reading. Here are the five best sources of funds for business startups simplified.


1. Use Your Savings

This is one pretty obvious. There is no better place to look than in your bank account. If you have savings, you should use it to invest in your business first. The more money you are willing to put in, the more others will believe in you enough to invest, too.

Using individual savings is common for new business owners. If you don’t have savings, there are avenues you can take to create a business funding first.


2. Find Investors

Investors can come from all walks of life. You can network to find a silent investor who believes in your vision. Or, you can turn to loved ones who can afford to gift you the money.

By partnering up with an investor, you won’t have to worry as much about startup funds. However, many investors want to see you have a solid plan and have put in as much money as you can.


3. Crowdfunding Sources of Funds for Business

Crowdfunding involves seeking funds from fans and future consumers. You can find sites that make it possible to share your business plan and ask for donations. With enough outreach, you may be able to obtain the funding you need.

Crowdfunding doesn’t always work. You should try other funding sources to ensure you don’t miss promised deadlines.


4. Get a Side Gig

As much as you may not want to work for another person, getting a part-time job can help fund your business. You will have to manage your time wisely, but once your startup kicks off, you should be able to drop the temporary position.

Some side gigs you can try are writing, virtual assistant, customer service, or a position in your new field. You will continue your work skills while earning the money you need to be your boss.


5. Obtain a Loan

A term loan gives you a set amount with a repayment schedule and a fixed or floating interest. Many businesses use loans for real estate, equipment, inventory, and other startup costs. Obtaining a business startup loan will help you get where you need to be.

Term loans are considered secured loans. These small business start-up loans require collateral you could lose if you fail to pay. These are common for new businesses or those without credit.


Plan For Startup Success

Now that you have read about the best sources of funds for business startups, you’re ready to plan for success. Use what you learned here to get the money you need for your company. You can combine ideas for higher investment costs.

Your sources of funds for business startups are a crucial part of your company. Keep exploring our blog for the best financial advice and tips and learn more today!

10 Different Types of Banks To Choose From

The banking world has evolved a lot over the last couple of decades. Now in 2025 approximately 90% of Americans have a bank account and reap its many benefits. Customers have a safe place to store their savings alongside accessing loans, making investments, and checking finances anywhere in the world. This is especially important after the recent bank failures around the world and the key FDIC insurance level of $250,000. 

Build Up A Bigger Bank Account And Cash In Here

A lot has changed since the First Bank of the United States was established in nearly two and a half centuries ago. Now many types of banking have emerged in the modern global and digital economy. No banks are changing a lot each year with new laws, economic volatility, fintech innovations, low interest rates, investment options, and cryptocurrency expansion. 

It can be challenging to choose the right bank in the modern age, especially with rampant inflation right now. There are also big banks that are struggling that have been around for decades or even centuries due to scandals, macroeconomic issues, and sluggishness to adapt to the modern digital era. Banking has been reimagined in the new digital economy, and the consumer has benefited for the most part.

Not sure how many types of banks there are to choose from? Don't worry, we have got you covered on all the different types of banking in 2025. 

Top 10 Types Of Banking To Choose From


1. Central Banks

This type of finance serves a governmental role as they help the country meet its economic goals through controlling monetary policy and the flow of currency. Central banks, sometimes called federal banks, also supervise commercial banks and set interest rates.


2. Commercial Banks

Commercial banks support small to large businesses compared to individuals. Mom-and-pop stores can open checking and saving accounts, loans, get access to credit, and transfer funds to companies in foreign markets.


3. Retail Banks

Retail banks are consumer-based where you go for everyday banking and other financial services. You can access different types of banking accounts, loans, credit cards, and insurance.

They often provide financial advisement services so you can get personal loans and mortgages. Retail banks are now offering more high yield savings accounts (HYSA) with interest rates in the 4% to 5% now, so take advantage! With HYSA options booming, you may be able to earn more than you are paying on a loan or even a mortgage depending on when you locked in your rate.


4. Private Family Banking

Private family banking funds whole life insurance policies to develop cash value. This lets customers borrow money to help pay off debt, mortgages, or to fund other aspects of your life.

These different banks offer protection so the policy owner can access the line of credit and receive a death benefit so the family has financial protection.  


5. Investment Banks

Think Morgan Stanley and Goldman Sachs.

Investment banks trade stocks and bonds between companies and investors.

They also focus on advising individuals and corporations who need financial guidance, reorganizing companies through mergers and acquisitions, and managing investment portfolios.


6. Private Banks

Private banks offer exclusive types of bank accounts to those who have $1 million of net worth. A wealthy individual owns the bank and offers a useful service to high earners so they can get advice from people who understand their financial situation and connections if they need a loan.


7. Cooperative or Mutual Banks

Cooperatives fall under retail and commercial banks. They are distinguished by their local or community-based associations who control how business is operated.

They offer loans and bank accounts, often active in a single community.


8. Savings and Loan Association

These are financial institutions that use deposited savings to create mortgages, refinance loans, and access other loans so customers can build or renovate their property.


9. Shadow Banks

Shadow banks are less regulated, known for running money market funds and hedge funds. They get their funding by borrowing, connecting with investors, or making their own funds instead of relying on the central bank.

10. Swiss Banks 

While Swiss banks aren't necessarily different from the other types of banks mentioned above in terms of products and services offered, they do offer one major well-known advantage: privacy and discretion. 

There is a reason why so many wealthy individuals and businesses have used Swiss banks for decades. They provide the trust and anonymity from governments, media, or businesses. Sometimes this is used for questionable financial activities, but other times it just provides a type of banking for bank customers and corporate entities that just want to be left alone.


These Are the Top Different Types of Banking

It is important to understand the various types of banking as they all meet different needs. Private and investment banks are useful for high earners whereas commercial banks are perfect if you run a mom-and-pop store. 

There is a financial institution for everyone, so it is important to learn how each one helps. And be on the lookout for new crypto banks and exchanges that are becoming more of the norm each month. Good luck with your better banking!