Credits cards and Mom and Pop
Bootstrapping: That is how you fund your start-up business. All other methods will be a waste of time or a lesson in dealing with bureaucracy.
Here is why
SBA Loan, Microfinance Loan, Bank Loan: These institutions will want to see that you have invested some of your own sweat equity and some of your own funds before they try to invest in you. They will want to see that your business has been running 1-2 years and that you have put some of your own capital into the business. On top of that, you will have to provide them with a business plan that includes stellar financials. This may require an accountant or a financial analyst to complete.
However, even if you do not apply for a loan with the SBA, I strongly suggest you work with them to attend their seminars and meet with their consultants so that you can have contacts, a good network and a stronger chance of securing a loan in the future.
If you can secure funds from mom and dad, it may be better. It is much easier convincing them to loan you some funds than it is convincing a bank. Draft a decent business plan and show your enthusiasm when you speak to them. Be sure about what you are discussing and have the answers to all their questions ahead of time. The trust is there already. Your parents just need to see that you are doing the right thing with their hard earned and saved up cash.
Credit cards and lines of credit: Register your business with the state and the U.S. Then open a business banking account. Try to open it where you have your own personal accounts. They are less likely to have bank fees there. Then make sure you have lines of credit that you can use.
So good luck with your business venture. Write that business plan and bootstrap your way to your first million!
