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Dealing with financing

What you need to know when dealing with finances

Starting a company requires some capital – big or small – depending on the type of business. If you plan to live solely on your business, you will need some funds for the establishing costs and for surviving until you begin to make a profit. Many businesses fail because they underestimate how much they actually need to both start off in a good way and keep business running during the first critical phase. When it comes to financing start by asking yourself:

1.     How much does your company need to make for you to cover both your private and your         business’ cost?  

2.      Do you have your own money to fund your business?

If you are not able to set aside your own money, there are multiple ways of financing but beware that each have their pros and cons, and that the options you have depends on the type of business you want to start. We have focused on presenting the types of financing that are most common for small businesses in the Nordics.

We hope you will find the funding concept most beneficial for your company.

What do you need financing for?

When do most small businesses and new companies seek funding? Well, it all depends on the type of business in question. Carefully consider, why your business needs funding, before taking the next step to ask for it.

Your Business Plan and your budget are valuable tools for determining how much you need for what and when. And these documents are also something your potential financing partners will ask you to provide.

Step 4 - Dealing with finances infographic

Financing options

Below we have selected different ways of financing a newly founded business. For each option we are giving you what we consider the pros and cons to get you up to speed. As a general rule, the more you want to scale up your business, the further down the list you may want to go – but this depends very much on the type of financing (and the amount) you get from either of the financing options. 

Also keep in mind that you can use many of the financing options in combination and that banks can partner with you in different ways along your journey.

Family, friends and peers

Family, friends and peers

Can contribute by lending some money or they can invest in your business and become your business partners for the future.


Digging into your own pockets is the immediate first step for most business starters. After that, turning to the personal and professional network around you is usually a natural and fast way of getting one step forward. These people know you well, want to offer support and see you succeed. They don’t necessarily expect any fees or interest for their loans. In addition, having your professional network invest in your company can increase your credibility and pave the way for future funding.


Be aware, money between friends or family can be a really delicate matter and challenge your relationship. Make sure to always have contracts with clear terms in writing to dodge some bullets later on.

Public funding
Bank financing
Professional investors

Find a banking partner

When it comes to financing your business, remember that banks are not investors. But if repayment is relatively assured they will – in many cases - lend you the money. To be able to assess whether or not you are able to repay the loan, banks would want to see a solid business plan, collateral and a steady cash flow. They will also consider your commitment: How willing are you to invest your time and money to succeed? 

Your personal credit score can also be an important factor: How is your history with the bank? Have you been able to repay your loans so far?

The below video will give you some valuable insights into what banks look at when you approach them for financing. 

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Let’s get your business started

We meet with many different businesses each day. This means that no matter what challenges and needs your business faces right now, we have probably seen something similar before. Take advantage of our experience, network and expertise when starting or growing your business.

If you are on the lookout for an investor, we can help you to get in touch with potential investors within our network. And we have other connections and partnering opportunities you may benefit from: Take a look at our business initiatives, networks and services. Maybe you’ll find something that can take your business to a new level?

Read more about opportunities for new businesses.

Become a corporate customer online

Start here and take the services into use

Dealmakers vs. dealbreakers

How you approach a bank or an investor can ultimately make or break a deal.

Pitch your business idea

What does the investor consider before investing in a business? And what does the bank look for? Hopefully our talk with both an experienced investor and a bank advisor will inspire you as to how you can prepare in the best way, before approaching them. We also introduce you to the elevator pitch, a 9-step pitch and how to create a perfect pitch plan. And to help you win the hearts – and wallets – of those you want to fund your business dream, we have also included some tips on how to best pitch your business idea.

If you’re serious about your business

Learn what legal matters you need to have in order when starting your own business, especially if you do it with a partner.

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