Managing business finance during the start-up phase

You will almost certainly have to find other ways to finance your needs during the early days of your business.

There are a number of options open to you.

Use personal savings 

Consider using your personal savings to fund your business. It’s important make sure that you have an emergency 'rainy day' fund which should add up to three months spending. See advantages and disadvantages of using your own money to start a business.

Start your business while employed

You can start your business while keeping your current job, using your spare time to run your business. See starting a part-time business.

Release equity from assets

One option is to release equity from existing assets, such as selling your car and purchasing a cheaper one. This can provide extra cash flow without taking on debt.

Sell unwanted assets

Many people have things that they do not use or want. You can sell these assets through auctions, online marketplaces or private sales. See transferring and selling assets.

Borrow from family and friends

You can get a loan from your family and friends. In most cases people who borrow from family or friends do not pay as much interest on such loans. However, be aware of ill feeling that may be caused if you are unable to repay on time. See financing from friends and family.

Seek local enterprise funding

Look for low-cost startup funding options managed by a local enterprise agency or community organisation, which may offer grants or loans to support small businesses.

Use factoring and invoice discounting

Borrow against future income by selling debts owed to you to a third party. See factoring and invoice discounting.

Bank loans or overdrafts

Get an overdraft or loan from your bank. Remember that the overdraft or loan will have to be repaid, and the interest rate may be high. See bank finance.

Leasing or hire purchase

Instead of buying fixed assets outright, consider leasing or hire purchase to fund fixed assets such as vehicles or equipment.

Seek equity investment

You can seek external investors willing to provide capital in return for a share in your business. See equity finance.

Take a second or part-time job

A second or part-time job can provide a useful source of income but it is important that it does not distract you from your priority of running your business.

For further information on business financing see business financing options - an overview.

Other sources of financial support

If your business is new or expanding, you could be eligible for business development grants or other government support schemes. Use our Northern Ireland business support finder to help you find publicly-funded and not-for-profit sources of assistance you may be eligible to apply for.

Watch a video highlighting the finance options available to start-up businesses.