10 Ways To Raise Capital For Your Business Part 1

Updated: September 20, 2022

How do you raise the start-up capital for your business?

This question is probably the biggest problem faced by those who want to become an entrepreneur.

Personally, I’ve heard friends say that if only they had enough capital, they would really quit their jobs and put up their own businesses. Admittedly, I was also burdened by this obstacle years ago when I was still working as an employee.

Through the years and five businesses later, I’ve found out that there are actually many ways to do this. Some are easy and some are not. Some are quite obvious while some take a little creativity and a bit of due diligence to make it work.

So if you’ve always wished that you had enough funds to start your own business venture, then I hope that these ten ways can help you raise the capital you need to become an entrepreneur.

1. Your Own Savings

The most obvious way to get your start-up capital is to save money. Be frugal, live below your means and pay yourself first. The advantage of this method is that if your business fails, then you owe nothing to anybody and you have no financial burdens to worry about.

However, although this may seem ideal to some, it could take a long time before you finally have enough money saved to start. Recommended for those who are not in a hurry to start a business and those with very low risk tolerance. If you plan to do it this way, then please check out some of the money saving tips I’ve written.

2. Liquidate Assets

Aside from digging into your savings account, you can also sell some of your assets. My father’s friend sold their old family car to put up a small photocopying center. Depending on the amount of capital you need, you could simply look around the house and sell whatever you have such as those tech gadgets, your pieces of jewelry and even some of your furniture or appliances.

If you have portfolio investments, you can ask your broker if you can liquidate some of your paper assets or withdraw from your mutual fund or time deposits.

3. Work For Extra Income

We often look for ways to earn extra income only when we are in financial need. What many people don’t realize is that finding a second job or working on a sideline is a great way to raise capital for your dream business. Assuming that your current employment can cover all your financial requirements, then the profits from your extra ventures can all go straight to your start-up funds.

Going this route can be time consuming and exhausting but it’s relatively faster than just doing the two previous methods. Do check out the different income opportunities I’ve covered here in this blog. Thanks.

4. Take Out A Personal Loan

A personal loan is something you can leverage on especially if you are employed. Depending on your credit history and employment status, some banks and almost all credit card companies are willing to offer these types of loans without much hassle and without collateral. Additionally, these salary loans are available in the Philippines through the Government Service Insurance System (GSIS) and Social Security System (SSS).

Microfinance institutions can also provide non-collateral personal loans to those who can present to them a sound business plan. You can inquire from Philippine government agencies such as the Department of Trade and Industry (DTI), Small Business Corp (SBC), and the National Anti-Poverty Commission (NAPC) about these micro-financiers.

5. Apply For A Bank Loan

Bank loans are also a viable option to raise capital for your business. Although the interests are much higher than personal loans, the financial strength of banking institutions allows them to provide you with a larger loan amount for your medium scale business ventures. Be ready to give them a good business plan and a collateral for the loan.

Ask your bank if they offer business loans. Brief research shows that some of the SME-friendly banks in the Philippines are Planters Development Bank, Bank of the Philippine Islands (BPI), Development Bank of the Philippines (DBP), and Land Bank of the Philippines.

Read Next: 10 Ways To Raise Capital For Your Business Part 2

Photos credits: graciepoo and DavidDMuir


  1. A personal loan could be the best option for you if you are looking to borrowing money for between 1 and 5 years and is particularly ideal if you have other debts that you’re looking to consolidate into one loan to reduce your overall monthly payments. Thanks for the info!

  2. This is very informative, indeed. Once you’ve started your own business and you still need additional capital, you might probably want to go to a microfinance insitution like KMBI.

    KMBI (Kabalikat para sa Maunlad na Buhay Inc.) is a non-government organization who helps the Filipino microentrepreneurs with their business-related finances.

    Aside from their group loan, also offer microinsurance for their clients and as well as a Capital Build-Up which teaches the clients the value of saving money. They also organize seminars and livelihood programs which will help their clients improve and grow.

    Hope this helped someone :)

Leave a Reply

Your email address will not be published. Required fields are marked *