Yes, It’s A Trap!
So, you want to get funding, but you have no money? Great! That means you’ve already mastered the art of wishful thinking. But before you start dreaming of investors throwing bags of cash at you like a startup Cinderella, let’s talk about what really happens when you try to get funding with absolutely nothing.
The Harsh Truth: Money Attracts Money
First things first—legitimate lenders and investors don’t fund air. They fund businesses, ideas, and assets. If you’re walking into a bank or pitching to investors with no money, no credit, and no collateral, you might as well be holding a sign that says, “Please scam me.”
The “No Money” Funding Options (aka, the Red Flag Zone)
1. Loan Sharks & Predatory Lenders
Promise: “No credit? No problem! No money? Even better!” Reality: Expect sky-high interest rates, hidden fees, and aggressive collection tactics that might involve someone “visiting” you at inconvenient hours. Ok maybe this is a little much, but it could happen.
2. Unsecured Business Loans (If You Can Find One)
Promise: “Get $100K in business funding today! No money needed!” Reality: These loans are often tied to sky-high personal guarantees, meaning if your business flops, they’re coming for your personal bank account, home, and maybe even your future dreams.
3. Credit Card Stacking
Promise: “Use multiple credit cards to fund your business!” Reality: Maxing out personal credit cards at 25% interest is not a funding strategy—it’s financial self-sabotage.
4. “Silent” Partners Who Suddenly Want Everything
Promise: “I’ll invest in your business—just give me 50% of your company.” Reality: Fast-forward six months, and you’re working 80-hour weeks while your “silent” partner collects profits and makes terrible decisions.
5. Crowdfunding Schemes
Promise: “Just set up a GoFundMe! The internet loves to support new ideas!” Reality: Unless you have a game-changing product, an army of supporters, or an emotional sob story, crowdfunding is just another way to get ignored online.
What Should You Do Instead?
Now that we’ve burst that bubble, here’s what actually works:
✅ Build Your Credit & Business Profile: Fundability matters. Get a business bank account, EIN, and establish credit with small vendor accounts before seeking big money.
✅ Leverage Assets: If you own property, vehicles, or equipment, consider asset-backed loans instead of unsecured, high-risk borrowing.
✅ Partner with Someone Who Has Money: Instead of getting scammed, find a strategic partner who can actually add value, not just money.
✅ Bootstrap & Generate Revenue First: The best funding comes from actual sales. If you can prove your business makes money, funding will come easier and cheaper.
✅ Look into SBA & Traditional Business Loans: With a solid business plan, you can access real funding options that don’t involve selling your soul.
Final Thoughts: If It Sounds Too Good to Be True…
Getting funding with “no money” is usually a shortcut to financial disaster. If you’re serious about getting business funding, play the long game, build your credibility, and don’t fall for shady deals.
Need help structuring your business for real funding? Connect with Coleman Capital Funding—where we finance smart, not desperate!