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Borrowing money is certainly not the easiest thing for most people to do, especially when you’re trying to start or grow your own business.
With global debt reaching a record $226 Trillion1, finding ways to borrow money that are actually feasible, is vital!
And if people can make millions selling used bathwater, you sure as hell deserve a chance to live your dream!
I want to help you with that. With all the information here in one place, you will soon be able to borrow money confidently and get ahead in your business.
Table of Contents
What are the Best Ways to Borrow Money?
- Family or Friends Loan
- Peer-to-Peer Lending (P2P)
- Banks
- 0% APR Credit Cards
- Buy Now, Pay Later Plans (BNPL)
1 – Family or Friends Loan
The best way to borrow money is from those you love and trust. In fact, nearly 10% of all Americans, or around 25.6 million people, have had to rely on their social network for financial assistance, up from 19.1 million in 2021.
In addition to getting the money you need, the pressure is off with having to provide tons of information beforehand. You get the money quicker and when it’s most needed so that you can start your business without delay.
Taking a loan from a family member or friend is the best way to borrow money.
5 Benefits of a Family or Friends Loan
1 – Pay Less and Save More – When you borrow money from family or friends, they are more likely to offer you a loan with little to no interest.
2 – Borrow Only What You Need – When you take out a loan from a bank, they will often lend you more money than what you need. This can be tempting so you don’t have to come back for more later, but it can also put you in a precarious financial position if the business doesn’t go as planned.
3 – Relaxed Repay – Borrowing money from friends or family usually means that you can negotiate a repayment time frame that is comfortable for both parties. This can be as long as five years, which gives your business the flexibility to grow before you need to pay the loan off.
4 – Improve Relationships with Loved Ones – If you approach borrowing money from loved ones with respect and consideration for their time and energy, then this will not only benefit your fledgling business but also help strengthen the bonds between you.
5 – Save Precious Time – Borrowing from family or friends is usually a much quicker and easier way to borrow money than applying with a bank. Borrowing from loved ones means that you can often get the funds you need within 24 hours, saving you precious time in your business journey.
Here’s what people are saying about Family or Friends Loans:
“Sure, I have friends, plenty of friends, and they all come around wantin’ to borrow money. I’ve always been generous with my friends and family, with money, but selfish with the important stuff like love.” Quote by Richard Pryor.
If you have decided that you want to borrow money from a family or friend loan to start and grow your business, you might want some help on how to go about *asking* for it. Check out this video to help guide you through.
| Pros | Cons |
| Pay Less and Save More | Potential Relationship Strain |
| Borrow Only What You Need | Your Friend or Family Member May Not Have Enough Funds |
| Choose Your Payment Plan | |
| Improve Relationships with Loved Ones | |
| Save Precious Time |
If you need money to start or grow your business, borrowing from a friend or family member is the best way to go. Borrow only what you need, negotiate repayment time frames that work for both parties, and enjoy the benefits of this type of loan.
With a little bit of planning and respect for your loved ones, you can get ahead in your business ventures!
2 – Peer-to-Peer Lending (P2P)
Another great option to borrow money is to use peer-to-peer lending (P2P). P2P is like Airbnb for loans, except you don’t have to leave your couch.
P2P lending is when you loan money directly to someone without using a third party, such as a bank, as an intermediary. It can be easily done on internet platforms that connect lenders with potential borrowers.
Using P2P as a way to borrow money is increasing in popularity, so much so that statistics predict total P2P loan values to be worth $1,000 Billion by 2025.
5 Benefits of Peer-to-Peer Lending
1 – Have Your Pick of Borrowers – Borrowing P2P means that you can access funds from a range of people, not just one or two. This gives you the freedom to choose who to borrow money from based on their credit rating and loan history.
2 – Don’t Wait to Get Your Cash – Borrowing through P2P platforms will typically get you money very quickly, often within 24 hours.
3 – Beat Those Dreaded Bank Interest Rates – Because P2P platforms can bring borrowers and lenders together and cut out the middleman, they tend to offer better interest rates than traditional banks would be able to do.
4 – Flexibility When You Need It Most – With most P2P lenders, you can choose your repayment plan, making it easy to fit the loan payments into your budget.
5 – Borrow as Much As You Need – Borrowing through P2P networks allows you to borrow more than you could through a bank or credit union because they have stricter lending regulations than P2P platforms do.
Read what this business owner had to say about Peer-to-Peer Lending:
“This is further evidence that bank funding is losing its significance amongst small businesses as they become more aware of the range on non bank funding models available to them.” -Paul Mildenstein, CEO of Liberis.
If you decide to pursue Peer-to-Peer Lending to borrow money to start or grow your business, it’s always helpful to know what you are getting into. Check out this video to help understand more about P2P lending.
| Pros | Cons |
| Have Your Pick of Borrowers | Potential Hidden Costs |
| Get Cash Quickly | Higher Interest Rates for Poorer Credit Scores |
| Avoid Bank Interest Rates | Potential That You Might Not Qualify for a Loan |
| Flexibility | Little Protection If Things Go Wrong |
| Borrow as Much as You Need |
If you’re looking for fast and easy access to funds to start or grow your business, consider borrowing from a peer-to-peer lender! With competitive interest rates and flexible repayment terms available, peer-to-peer lending is a fantastic choice.
3 – Banks
One of the more traditional ways to borrow money is, you guessed it (or maybe you didn’t) – at a bank. Regardless of all the options out there, depending on how much you need, and your credit profile, banks are a reliable and trustworthy way to borrow money. Check out my top recommendations for the best banks for small business.
When you apply to borrow money at a bank, they will assess your credit and financial situation first and then loan you a certain amount based on that information. They will almost always charge interest, which is payable in addition to your monthly repayment installment.
Even though online platforms are rising in popularity as a means to borrow money, banks are still the leading providers of loans.
5 Benefits of Banks to Borrow Money
1 – Have Confidence in What You Are Getting – Borrowing from a bank means that you are borrowing from a lender with a long and established reputation. This will give you confidence in the security of your loan, as well as peace of mind that they will stand by their lending terms.
2 – Choose From a Wider Variety of Borrowing Solutions – Banks have access to many different types of loans than most internet platforms. This can work to your benefit if you need a large amount or want more time to repay your loan. They can also often offer fixed interest rates for longer repayment periods than some P2P lenders.
3 – Trust Where Your Money is Coming From – Borrowing from banks is often easier than going through an online platform, especially if you do not feel comfortable sharing personal financial information over the internet. Borrowing directly from a bank will also likely result in shorter loan processing times and the ability to sign your loan agreement with just one visit.
4 – Reliability When You Need It Most – Borrowing from a bank also means that you can be sure that your loan funds will be available when you need them. With P2P lending, there is always the potential for delays if not enough people fund your loan.
5 – Borrow Without Limits – One of the great things about banks is that they can lend you as much money as you need, as long as you qualify and meet their lending criteria. With P2P lending, the amount you can borrow is limited to what people are willing to fund.
Read what people are saying about Bank Loans:
“At its core, banking is not simply about profit, but about personal relationships.” Quote by Felix Rohatyn.
If you decide to borrow money from a bank, it’s always best to be prepared! Check out this video to help you along:
| Pros | Cons |
| Know Exactly What You Are Getting | Higher interest rates for poorer credit scores |
| Wider Variety of Borrowing Solutions | Potential that you might not qualify for a loan |
| Trust Where Your Money is Coming From | Possible Processing Time Delays |
| Reliability | Less Flexibility |
| Borrow What You Need, When You Need |
Banks are a great way to borrow money from a reputable source, which can give you confidence in the security of your loan. Borrowing directly from a bank will likely result in shorter loan processing times and the ability to sign your loan agreement with just one visit.
4 – 0% APR Credit Cards
With more than 80% of consumers still preferring cards over cash, a 0% APR credit card is another popular way to borrow money. This is especially true for small businesses and entrepreneurs who are looking for a reprieve from interest, so they can focus on growing their business. Read my article on the best credit cards for young adults here.
A 0% APR credit card is a great option for small businesses because it allows you to borrow money without having to pay interest. This means that you won’t have to worry about any additional costs on top of what you borrowed initially, and can better manage your debt repayment. In addition, this is also an easy way to get access to funds quickly, without having to go through a lengthy application process.
5 Benefits of 0% APR Credit Cards
1 – Pay Back Only What You Borrowed, Not a Cent More – For a specified timeframe, 0% APR credit cards can offer no interest on the money you borrow, helping to save you money in the long run. This means that while you may have to pay a fee when you first take out your credit card, you will save significantly by not having to pay back additional costs over time.
2 – No Costly Surprises – Most 0% APR credit cards charge a small annual fee for using them, but this is often minimal compared with the overall cost of borrowing from other sources. This makes it an affordable option for businesses that may be strapped for cash.
3 – Save More Time – Borrowing from a 0% APR credit card means that, unlike some P2P lenders or banks, there will be no wait for funding approval. This can be extremely convenient for businesses looking to quickly access funds without having to go through burdensome application processes or wait times.
4 – More Money For Longer – Credit cards usually offer more flexible repayment terms than other types of lenders, such as extended interest-free periods and the option to repay in smaller installments over a longer period of time. This makes them an attractive option if you need a large sum of money but may not have the financial resources to pay it all back at once.
5 – Headache-Free Application – In many cases, you can apply for a 0% APR credit card online in just a few minutes, and often receive approval instantly. This makes applying for a card one of the fastest and most convenient ways to borrow money for your small business.
Read what people are saying about 0% APR Credit Cards:
“As a child, a library card takes you to exotic, faraway places. When you’re grown up, a credit card does it.” Quote by Sam Ewing.
As with all things when it comes to borrowing money, if you decide to take out a 0% APR credit card, there are some things you should know. Check out this video for more information.
| Pros | Cons |
| Pay Back Only What You Borrowed | May Encourage Overspending |
| No Surprises | Requires a Good Credit Score |
| Save Time | May Include Balance Transfer Fees |
| More Money For Longer | May Have Annual Fee |
| Headache-Free Application |
So if you are looking for a quick and affordable way to get the money you need for your business, using a 0% APR credit card is just what you need. With so many different cards available on the market, there’s sure to be an option that meets your needs and helps you grow your business.
5 – Buy Now, Pay Later Plans (BNPL)
Last on our list of the best ways to borrow money is making use of buy now, pay later plans (BNPL). Get what you need, when you need it without delays, and pay at a more convenient time.
Generally, what these BNPL plans entail are deferred payment periods, meaning that you do not have to pay back what you borrowed until a later date, allowing you more time to get your business up and running.
In 2021 alone, 55,8% of consumers used buy now, pay later plans which shows what a feasible option this is for you to start and grow your business.
5 Benefits of Buy Now, Pay Later Plans (BNPL)
1- No Credit, No-Hassle – BNPL plans are typically very quick and easy to apply for. This means that you can get the money you need without having to wait long or jump through a lot of hoops. And, the fact that you do not need credit to borrow money in this way makes this option a lot more accessible for everyone!
2- Freedom To Spend Your Money as Needed – BNPL plans usually have minimal restrictions on what items you can purchase, making them a great option if you need funds for business expenses or other needs. For example, many BNPL options allow you to borrow money for anything from electronics and clothing to furniture and home appliances.
3- Enjoy the Borrowed Funds For Longer – Perhaps one of the biggest benefits of BNPL plans is that they are often more affordable than other types of borrowing options. Many BNPL plans even offer interest-free periods, meaning that you can avoid paying high-interest rates on your borrowed funds.
4- No Rushing Necessary – BNPL plans are also very convenient, as they allow you to make purchases without having to immediately pay for them. This means that you can get what you need right away and spread out the cost over time.
5- Pay Without Penalties – BNPL plans typically offer a lot of flexibility in terms of repayment options. For example, many BNPL providers allow you to choose how much you want to pay each week or month, and some even offer the option to make early repayments without any penalties.
See what a major BNPL CEO has to say about this option to borrow money:
“A big transformation, particularly from the next generation of consumers, is shifting away from credit to debit… Two out of three millennials don’t own a credit card.” -Afterpay co-CEO Nick Molnar, on Buy Now, Pay Later and business strategy.
If you decide to borrow money using a buy now, pay later plan, there are some things you should know first. Watch this video to help you choose the best option for your business.
| Pros | Cons |
| Avoid Complicated Application Processes | Can Lead to More Debt |
| Spending Freedom | May Include Fees and Charges |
| Enjoy the Borrowed Funds For Longer | May Affect Your Credit Score |
| Buy Without Paying Immediately | |
| Pay Without Penalties |
If you are looking for an affordable way to get the money you need for your business, consider applying for a BNPL plan. Just make sure you do your research and read all the terms and conditions carefully before signing up and your business should be well on its way to getting started!
Common Questions About Borrowing Money
Where Can I Borrow Money Immediately?
CreditNinja offers online personal loans with same day decision so you can get your money immediately.
Some of the best places to borrow money immediately include borrowing money from family or friends, a credit card cash advance, banks, through a loan app, from a P2Pl lender online, or pawnshop loans.
Is it Borrow Money or Lend Money?
To lend means to give something to someone for a short time, expecting that they will give it back to you. To borrow means to take something from someone for a short time with the intention to give it back. When you give, you lend. When you borrow, you receive.
What is Borrow Money Called?
When you borrow money, it is called a loan. You will often have to pay the money back with interest – the cost of borrowing money. The interest rate is added to the original amount that you borrowed and how much interest you pay, will depend on the loan and lender.
How Can I Borrow Money Online Instantly?
The greatest ways to borrow money online instantly are to borrow money from family or friends, obtain a credit card cash advance, use a loan app, find a personal lender online, peer-to-peer lending (P2P), or pawnshop loans.
Best Borrow Money Apps?
If you’re looking for the best borrow money apps, look no further than Dave, Empower, Earnin, PlayActiv, Brigit, MoneyLion, SoFi, Even, Branch, Chime, and CashApp. Although, remember to do your research as each one works well for different reasons.
Where to Borrow Money Online?
If you’re looking to borrow money online, you can do so through banks, peer-to-peer lending (P2P), apply online for a credit card cash advance, or even look at the many loan apps that are available to help you borrow money online.
What are Borrow Money Apps?
Borrow money apps are a way to get the financial assistance you need without going through a bank or another large institution. Borrow money apps help to connect people who have money to lend with those who want to borrow it. See my article on the best banks for small business.
Where Can I Borrow Money ASAP?
If you are looking to borrow money ASAP, you might want to consider borrowing funds from family or friends, taking a credit card advance, using a loan app, obtaining a personal lender online, or looking at pawnshop loan options.
Post-Game Report: Best Ways to Borrow Money Champions
- Family or Friends Loan
- Peer-to-Peer Lending (P2P)
- 0% APR Credit Cards
- Buy Now, Pay Later Plans (BNPL)
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