SBA Loans & Other Sources of Funding For a Financial Advisor


If you’re a financial advisor, you know that starting and running your own business requires an investment. You need to find the right funding sources to begin your business. Here are some tips to get started.


Before Seeking Funding for Your Financial Advisor Business

Before obtaining funding for your financial advisor business, you’ll need to do some preliminary work. You’ll need to create a business plan and determine how much funding you need. 

You should also open a business bank account. This will make it easier to track your expenses and keep your finances separate from your assets.


Common Funding Options for Financial Advisor Companies

Numerous business financing and funding options are available for a financial advisor company. The most common ones are:


Bootstrapping a financial advisor company is often the best option for new entrepreneurs, as it doesn’t require any outside funding. With this option, you can use your personal savings to cover initial costs such as office space rental, marketing, and business licenses.

This option has the advantage of being relatively low-risk since you’re not borrowing money from anyone else. However, it can sometimes be difficult to start and sustain a business without any outside investment.


Debt Financing

Personal Loans from Family & Friends

Another standard financing option is loans from family and friends. This can be a good option if you don’t have enough money to cover your start-up costs. However, it’s important to establish a clear repayment schedule and to make payments on time to avoid damaging relationships.

Business Loans from SBA or Local Bank

The Small Business Administration (SBA) offers a variety of loans for financial advisor businesses, including start-up loans, new equipment financing, working capital loans, and real estate loans. These loans are issued through local banks and come with relatively low-interest rates. Traditional bank loans and lines of credit can be used to fund your financial advisor business.

Business Credit Card

A company credit card is a good option for financing financial advisor businesses. It allows you to borrow up to a specific limit and use the card to pay for expenses such as marketing, supplies, and travel. 

The advantage of a credit card is that it can help you build your credit history and score as a business. However, you should pay off your balance each month to avoid accruing interest charges.


Equity Financing

Angel Investors

Angel investors are individuals or groups who invest in early-stage financial advisor businesses in exchange for an equity stake in your company. This can be a good option for business owners who want to grow their business quickly, as angel investors can provide financing and mentorship. 

However, angel investors often expect a high return on their investment, so you’ll need to be prepared to give up a 10% – 30% share of your financial advisor company.


Other Funding Options

Several other funding options are available for financial advisor businesses, including crowdfunding and grants. Crowdfunding allows you to raise money from individual investors through platforms such as Kickstarter or Indiegogo. Grants are available from various sources, including the government and private foundations. 


Create Your Business Plan

As mentioned above, you will need a solid financial advisor business plan for many of these options to make a strong case to potential investors or lenders. A well-written business plan can help you secure funding and grow your business.



Several funding options are available for financial advisors, including loans, credit cards, angel investors, and grants. Carefully consider each option to choose the best one for your business. No matter which option you choose, it’s essential to have a well-written business plan that outlines your goals and strategies for growing your financial advisor company.