Christian Business Funding: How to Finance Your Christian Business

Some ideas for funding your Christian business as a new or aspiring business owner

Business funding is an important factor when starting a business, no wonder one of the most frequent questions new or aspiring Christian entrepreneurs ask is how to finance their business.

Your business finance is one of those things you have to sort out before you launch your business if you want your business to be successful. Sadly, a lot of business owners jump into entrepreneurship without taking the time to figure out how they will keep financing their business. This is a bad strategy that often leads to a lot of problems down the road.

Also, the lack of funding has prevented many would-be Christian business owners from launching their business. There are lots of aspiring Christian business owners who can’t seem to figure out how they can fund their business idea.

In this post, we are going to look at some ways you can fund your Christian business. If you have been putting off launching your business, here are some Christian business funding ideas you should consider.

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Christian Business Funding Ideas: How to Finance Your Christian Business

1. FINANCE YOUR CHRISTIAN BUSINESS FROM YOUR SAVINGS

Personally, this is my favorite way to fund a business, however, I know this isn’t always possible especially for businesses that are capital intensive like some product business, a manufacturing business, or buying a franchise.

If your business idea doesn’t require a large investment, you should consider financing it from your savings. Using your savings to finance a business means you don’t have to worry about taking out a loan or paying back the money you borrowed. It also gives you peace of mind and allows you to focus on growing your business.

So, I know the next question is probably, “what if I don’t have any savings?” Well, if you don’t have any money saved up, the first thing you can do is to start saving up. Start by coming up with an estimate of your start-up costs, next figure out how long it will take you to save up the amount. Then, start putting that money aside each time you receive a paycheck.

Now, I know some of you may be anxious to get started on your business right away, so let’s look at some other Christian business funding ideas that may be more suitable for you.

2. GIFTS OR LOANS FROM FAMILY AND FRIENDS

So, how do you fund your business when you have no money? This question is pretty common with aspiring entrepreneurs who have no idea how they can launch their business.

A Christian startup business can be financed with gifts or loans from family friends. If you have a viable business idea, you can share your idea with some friends or family members and see if they’d be willing to support you financially.

While not everyone will have rich friends or relatives, you might be able to get some financial assistance from people close to you. Of course, this all depends on your startup costs and how you approach them.

Before approaching your family or friends for financial assistance, it’s a good idea to have some sort of business plan you can show them. Even if you don’t have a business plan, you should be able to articulate what your business is about, how much research you have done, and how much you need to get your business off the ground.

I find that most people are willing to help (if they can), as long as they believe they are investing in something with a reasonable chance of success. So, you have to be prepared, confident, and communicate your idea clearly if you want your family to buy into your vision.

The major advantage of funding your Christian business this way is that the repayment terms for any loan will be more flexible and you can have access to the funds without jumping through a lot of hoops.

The downside to borrowing money from friends or family is that it could potentially ruin your relationship/s if you fail to repay the loan. So, you need to think about that before you approach anyone for help.

Make sure you are serious about the business, you have done proper research, and you have a plan for your business.

3. YOU CAN FUND YOUR CHRISTIAN BUSINESS STARTUP WITH SMALL BUSINESS LOANS

Another option for funding a business is to get a small business loan. There are lots of government or private organizations that offer loans or grants to new or existing business owners, so do some research in your city, state, or country to find out the process for applying for a small business loan.

If you live in the United States, the Small Business Administration is the place to go if you need a small business loan. So, check them out, find out their requirements, and see if you qualify for a small business loan.

To qualify for the SBA loans, a business should have less than five hundred employees. Self-employed and independent contractors can also qualify for a small business loan as long as they meet the other requirements.

So, check them out if you are in the United States or check out a similar program in your country.

4. BANK LOANS

Obtaining a bank loan is another way to fund your Christian business. If you have a good relationship with your bank and good credit history you may be able to get a loan from your bank.

Unfortunately, this isn’t guaranteed and quite a few people have a hard time getting a business loan from their banks. One of the main requirements when applying for a bank loan is that you must have a proper business plan that outlines all the important aspects of your business. This requirement is one of the reasons many small business owners are often denied a bank loan.

I am just putting this out here because it’s another option that you can explore if you have no other options for financing your business. Before applying for a loan or accepting a loan, make sure you read the fine print. In particular, ensure the interest rate and repayment terms are acceptable and won’t cause you a lot of hardship down the road.

Also, note that the process of getting a bank loan can be time-consuming. This isn’t a quick process, so be prepared to wait for months if you choose to go down this route.

5. GET A PARTNER

Lots of Christians go into business with a partner for financial reasons. If you are a small business owner, you may not need or want a partner, but this is an option you can explore if you are willing to share the control and management of your business with someone else.

A word of caution about partnerships. Don’t go into business with someone who doesn’t share your values because you are desperate for money. A business partnership is a serious relationship with legal implications. So, be very mindful if you decide to start a business with a partner.

Draw a partnership agreement and make sure both or all partners agree to the terms of the partnership. For example, how to share profit, how to manage the business, the terms for the dissolution of the partnership, etc.

There are different types of business partnerships or partners but the details are outside the scope of this post. But, the main takeaway is that a partnership can work and is another way to finance your Christian business, but you need a partner who shares your values and the terms of the partnership should be clearly stated.

6. CHRISTIAN ANGEL INVESTORS

A growing source of funding for small businesses is angel investors. Angel investors are typically rich people who decide to invest in your business for a share of your business. Angel investors also have business experience and can be an invaluable source of business advice.

This type of Christian business funding isn’t suitable for business owners who want to retain total control of their business. While this is similar to having a partner, angel investors are not usually involved in the day-to-day running or operation of your business.

A silent partner is similar to an angel investor but you can also have business partners who are involved in the running of the business. If you are interested in this type of business financing, you can read more about angel investing in the article below.

Getting Started With Angel Investing

Like most things, please make sure you do your due diligence before signing up for anything. If you are unfamiliar with angel investing, please do a lot of research, speak to other business owners, and search for reputable Christian angel investors in your area.

7. FUND YOUR CHRISTIAN BUSINESS THROUGH BOOTSTRAPPING

Bootstrapping your business is a great way to retain control of your business, and a great way to start and grow your business when you have little or no money.

So, start by asking yourself what skills you have and what you can do on your own to get your business started. For example, can you create your own website, design a logo, or create your own products or content instead of outsourcing?

This funding method works well for businesses that receive payment before you deliver a service or create a product. For example, a cake business can take requests and payments before delivering the cake to the customers.

If you choose to bootstrap your business, you must remember to keep your expenses low and work with a budget. Don’t invest in bells or whistles, keep it simple, and only invest in your business essentials (the things you can’t do without in your business).

Not all businesses can be bootstrapped, but if your business is one of those that can use this funding method, I think it’s a great idea, and you can scale up your business as you receive more income.

What are the next steps for funding your Christian business?

In this post, you have learned about the different methods you can use to fund your Christian startup business. We looked at using your savings, gifts, or loans from family or friends, or using a small business.

Not all of the different ways is going to be suitable for your business, but hopefully, you can find one or two that will be suitable for you. You can also look in a Christian funding directory for links to Christian funding sources.

Finally, pray about your decision. Pray for guidance and favor. At the end of the day, the Lord is your shepherd and helper. He’s the one who provides for you, so take the time to seek his face and ask for direction and clarity.