Starting a business means facing a constant stream of decisions.
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The first big decision you’ll have to make is how to fund your small business. You may ask yourself, “Should I get funding?” or “Should I seek investment?” No matter how you phrase the question, you’re essentially asking how to do it—and what makes the most sense for your situation. What works best for one business isn’t always the right fit for another. There are many variables to each funding route you might explore. Let’s break down the pros and cons of some of the most common ways to get business funding in 2025.
Funding Options: Weighing the Pros and Cons
1. Bootstrapping
When you hear “bootstrapping,” you probably think of using your own money to get things started. That’s one version of it, but bootstrapping can also mean getting creative—like using existing resources, picking up a side hustle, or reinvesting early revenue instead of taking on debt. It’s all about funding your business without external capital.
Many successful companies—like GoPro, SPANX, and more recently, Gymshark—started by bootstrapping their way to growth.
- Pros: You avoid debt, interest payments, and giving away ownership. You stay in full control.
- Cons: It can slow you down. Waiting on income or extra side earnings might cost you momentum during crucial early stages.
2. Borrow Money – Formal
Borrowing from an institution remains one of the most popular ways to launch and grow a business. In 2025, there are more accessible options than ever thanks to fintech platforms and faster underwriting tools. Some of the most common routes include:
2a. Bank Loans
You can apply for a traditional small business loan from a bank. If you don’t know where to start, platforms like our Marketplace help match you with lenders that best align with your business profile.
- Pros: Loan amounts can be substantial, and payment terms are structured.
- Cons: New businesses may struggle to qualify if they don’t yet have strong credit, revenue history, or time in business.
2b. Merchant cash advance (MCAs)
A merchant cash advance lets you borrow a lump sum in exchange for a portion of your future credit card sales. Uplyft Capital makes this process fast and straightforward.
- Pros: Quick access to capital—often within 24 hours. MCAs don’t require collateral or high credit scores.
- Cons: MCAs are designed for short-term needs, not as a long-term funding solution.
2c. Investors
There are a few different types of investors. Angel investors typically get involved early and are open to taking more risks. Venture capitalists manage larger sums and invest in startups with high-growth potential.
- Pros: It can lead to large amounts of capital and valuable mentorship or connections.
- Cons: You’ll give up equity and some control over your business, which may be costly in the long run.
3.3. Borrow Money – Informal
If you’re not ready to take on formal financing, informal sources—like family, friends, or even crowdfunding—can help you get started. Platforms like Kickstarter and Indiegogo remain popular in 2025 for early-stage businesses looking to test an idea while raising funds.
- Pros: These arrangements are often more flexible and personal. You can set terms that work for both sides.
- Cons: Mixing money with relationships can be risky. If expectations aren’t clear, it could strain personal connections.
Here’s To New Beginnings
Finding the right funding method for your business will take a mix of research, planning, and honest self-assessment. The route you choose now will influence your business in its early stages—but it doesn’t have to be your final decision. As your company grows, your capital needs will evolve, and you may combine multiple strategies along the way.
If you’re unsure where to start, consider how quickly you need funding and how comfortable you are with risk. Merchant cash advances are ideal for fast capital. Bootstrapping offers control. Investors bring resources and experience. Friends and family offer flexibility—just make sure you protect those relationships with clear agreements.
No matter which path you take, getting started is the most important step. Uplyft Capital is here to support small business owners with the funding they need to move forward confidently.
Getting started is the first and most necessary step!
