Customer and supplier financing

Customers and suppliers are an often-overlooked source of start-up financing. Sometimes suppliers, if they recognize that your business has the potential to become a regular customer, will provide your business financing or funding to help it get off the ground. Similarly, if you feel that your product or service will add considerable value for a particular customer and save the customer money, the customer might be willing to prepurchase a certain amount of the product, which is a way for you to generate start-up funds. If you’re buying a franchise, you can typically obtain financing through your franchisor.