Funding Options for Scaling: Exploring the Best Alternative Financing Solutions for 2025

North Mondays Series: Episode 114 

You’ve done the heavy-lifting, validated your idea, acquired your first customers, figured out what works and built real momentum.

But the truth no one prepares you for is that growth costs money.

Suddenly, it’s not enough to believe in your business. 

You need to:

• Fund the business. 
• Hire people. 
• Expand your operations. 
• Build or stock inventory. 
• Invest in marketing. 
• Move from your living room to an actual office.

And this is where many founders hit a wall.

We’ve been conditioned to think there are only two ways forward: chase venture capital or get bank loans.

And that’s a problem.

Why?
Because those aren’t always the right fit for early-stage businesses trying to grow on their own terms.

The Challenge: Finding the Right Funding Match

Whether it’s equity you’ll regret giving up, or loan terms that choke your cash flow, the wrong kind of funding can do more harm than good. In the current economic climate, where inflation and unpredictability are in constant rotation, founders can’t afford to make funding decisions based on vibes.

Funding can accelerate growth or create long-term friction.

Here’s what usually goes wrong:

• Founders give up equity too early, losing control of decisions before product-market fit.
• Loan terms are too rigid, with repayment schedules that don’t reflect your cash flow reality.
• Investors push for aggressive growth, while your operations aren’t built to scale that fast.
• You chase trends and pitch competitions just to get cash, instead of focusing on sustainable business.

And in 2025’s unpredictable market where inflation, currency shifts, and customer behavior can swing monthly the wrong funding decision can hurt more than it helps.

That’s why smart founders are rethinking their capital strategy.

Alternative Financing Solutions

Thankfully in 2025, we’re seeing a clear shift:
Businesses are turning to alternative financing solutions that are more flexible, more transparent, and better aligned with how they operate.

These options don’t force you into a one-size-fits-all model.
They let you fund your growth on your own terms without giving up ownership or straining your cash flow.

It’s not about rejecting VC or banks.
It’s about understanding all the tools available and choosing what makes sense for your model, margins, and maturity.

Modern Funding Options You Should Know

Let’s break down the alternative financing solutions available and when to use each:

1. Revenue-Based Financing (RBF)

This one’s simple: you get funding upfront, and repay it as a percentage of your revenue. 

• No equity given. 
• No pressure to repay when you’re not making money.

It’s like borrowing from someone who understands that sales have seasons.

Perfect for businesses with predictable income like SaaS, eCommerce, or service-based models.

Example: You take ₦20M and agree to repay ₦24M from 10% of your monthly revenue. If revenue slows, so does repayment.

2. Invoice Financing

In a world where big clients take 60 to 90 days to pay, invoice financing says: 

• “You’ve done the work, here’s your money now.”
• You use your receivables as leverage to get paid faster.
• And the best part? It’s your customer’s credibility, not yours, that matters most.

Ideal for B2B businesses and consultants waiting on delayed payments.

3. Asset-Based Lending

Use inventory, machinery, or receivables as collateral to get a loan.

• Ideal for product businesses and manufacturers
• Amount you can borrow depends on asset value, not just financials
• Useful for seasonal businesses needing a liquidity buffer

This works well for agri-businesses, logistics, or retail companies scaling their supply chain.

4. Crowdfunding (Equity or Rewards-Based)

Raise funds from the public in exchange for early access, perks, or shares.

• Lets your community invest in your success
• Builds buzz and early adopters
• Best for product launches or mission-driven businesses

Use platforms like GoFundMe, Kickstarter, or GetEquity.

5. Grants and Competitions

Sometimes, the best kind of money is the one you never have to pay back.

Grants from development banks, NGOs, or innovation hubs are designed for businesses tackling real problems like climate change and food insecurity.

Yes, they take time. 

Yes, the paperwork can be long. But the trade-off? 

You keep your equity, your peace, and your long-term vision.

Example: Lagos Innovates, African Development Bank programs, or Tony Elumelu Foundation.

How to Choose What’s Right for You

Before you jump into any funding model, pause. Ask yourself:

• Do I want to keep full control of my company?
• Is my revenue consistent enough to repay gradually?
• Do I have assets or invoices I can leverage?
• Am I in a season of survival, scale, or sustainability?
• What are the real costs that come with this funding?

Don’t just ask, “How much can I raise?”

Ask, “Can this type of money help me build, not just grow?”

Choosing the right option is about fit, not speed.

North Mondays Action Plan

1. List your top 3 financial needs for the next 6–12 months
2. Calculate your current cash conversion cycle and monthly burn
3. Pick one alternative financing solution that fits your model
4. Research 2–3 platforms or providers in that category
5. Talk to a founder who has used that option to get real insights
6. Build a 2-page internal funding plan: how much you need, why, when, and from where

Remember raising money isn’t the goal, sustainable, values-aligned growth is.

Takeaway

You don’t just need funding.

You need funding that fits.

The kind that allows you to grow your business while sleeping with both eyes closed. 

In 2025, there are more options than ever. Explore them.

North Mondays is here to help you fund wisely, build boldly and scale on your own terms.

Your Turn

What funding path are you considering and what’s holding you back from moving forward?

Reply and let’s break it down.

Let’s make funding work for you and not against you.