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How to Start a Business With No Debt

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Want to start a business but don’t want to get into debt? You’re not alone. Starting a business can be a dream for some people but many don’t follow through or believe the only way they can get started is by taking out a loan.
While taking out a business loan can help you get going, it’s not really required especially in this day and age. Starting a business debt-free can lead you to just as much (if not more) success.
Marc Charles, author of Early to Rise, is a serial entrepreneur who has launched more than 40 successful businesses over 22 years that have produced millions in revenue. The interesting this is, Marc only had a start-up budget of less than $2,000 in the beginning.
This just goes to show you that anyone can become an entrepreneur without getting into debt. Here are a few ideas to help you get started!

Spread Out Your Launch Deadline

If you’re on a budget but still want to start your business, you can fund expenses in cash and pay as you go. In order to make this work, think about spreading out your launch deadline. You can also find ways to increase your income during this time but realize it may take 12-18 months to launch a business that you could launch instantly or within 6 months with a loan.
This approach requires you practice some delayed gratification just like you would if you were planning to pay for a wedding or vacation in cash. You’ll wait a little longer as you save up money, but the prize will be sweet especially when there’s no debt attached to it.

Choose a Digital Business

One of the best ways to start a business with no debt is to have a digital business. When your business operates primarily online, you’ll instantly cut our numerous expenses and start-up costs.
Personally, this was how I was able to launch my freelance business without spending much money at all. With an online business, you’ll most likely need to pay for a professional website, any materials or software you need to do your job, and perhaps some licenses or certifications depending on what you do.
You don’t have to spend money on an office space when you get started if you don’t want to. This alone can save you a ton of money and consolidate many start-up expenses. If you’re providing a digital service, you can probably start your business for less than $500.

Consider Grants and Other Funding

If you’re going to need more money for your business and are afraid you won’t be able to fund everything with cash, consider applying for a grant or securing some other funding that you don’t have to pay back.
Grants can be very competitive with application requirements that are very specific regarding the type of business you can have and what the funds will be used for. You’ll also want to draft up a detailed business plan before applying.
The Small Business Administration (SBA) provides government grants to businesses although they mainly service loan.
If you do your research and realize you may not qualify for a grant, consider using crowdfunding to raise money to start your business. Sites like Kickstarter and Go Fund Me are very popular and allow you the opportunity to share what your business is about with others and who it will help.
Business ideas that will make an impact on others or the community are the most likely to get funded.


Business loans can be helpful but are not required in order to start a successful business. When it comes to starting a business without debt, you only have two options: fund the start-up costs yourself or find someone else who can provide you with the funding as a grant or crowdfunding campaign. Either way, you won’t have to deal with the stress and hassle of taking out a business loan.

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Debt Expert and Financial Writer
Choncé Maddox is a debt expert. She helps ambitious millennials and Generation Z get our of the mounds of debt they are in following college. In 2015 she realized she couldn’t afford to do her own laundry, she was so broke. She had to make a change. Over the next three years she personally tackled $50,000 in debt and became debt free. She teaches others her passion since.

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