The trend of one-person businesses is growing significantly across the United States. There are nearly 30 million solopreneurs in the United States, who collectively contribute roughly $1.7 trillion to the economy.1 Additionally, around 440,000 solo business applications are submitted each month.2 This increase can be attributed to advances in technology, the rise of the gig economy, and a growing desire for workplace flexibility and independence.
Entrepreneurs who are just beginning their journey as solopreneurs, as well as those who have established their businesses for a year or more, often need growth capital. This funding is essential for various aspects of solopreneur operations, such as acquiring new equipment, stocking up on inventory and supplies, launching marketing campaigns, and securing suitable office or warehouse space. This article from Huddle Business Capital discusses various funding options available for qualified solopreneurs.
Before exploring the various funding options available to qualified solopreneurs, we first want to explain what a solopreneur is and emphasize the significance of this segment of the business community to the economy.
A solopreneur is a small-business owner who operates a company on their own, without any employees. This means they are responsible for every aspect of the business, from marketing and sales to customer service, accounting, and product or service development.
As we mentioned above, there are approximately 30 million solopreneurs in the United States who contribute $1.7 trillion to the economy. Solopreneurs work in a wide range of business industries, including retail, business services, technology, e-commerce, marketing, graphic design, and tutoring. Over 70% of solopreneurs are profitable in their first year, with nearly 4% earning $1 million or more annually.3 However, over 60% of solopreneurs have less than six months' worth of savings in the bank.4
Forward-thinking solopreneurs take a proactive approach to financial planning, carefully balancing their immediate cash flow needs with their long-term business goals. This often involves securing growth capital, which we will outline next.
If you're a solopreneur, you likely have operational expenses such as inventory, supplies, rent, and marketing. A working capital loan provides the funding for these and other expenses, and it can also be used to fill cash flow gaps during unexpected slow periods.
Unlike traditional business loans, which typically have longer repayment terms that can extend over several years, working capital loans generally offer shorter repayment periods. This feature makes them particularly advantageous for covering immediate and short-term expenses.
The need for capital can emerge at any time, catching solopreneurs like you off guard when you least expect it. In these critical moments, having access to a business line of credit can prove to be invaluable, providing a financial safety net when urgent needs arise.
A business line of credit allows you to access funds from a predetermined limit whenever they are needed. You can draw funds to purchase inventory and supplies, cover marketing expenses, and pay bills. In addition, you can use the funds to cover unexpected costs, such as equipment repairs or computer breakdowns.
You don't have to manage a multi-million dollar enterprise to recognize the importance of having the right equipment for your operations. Solo businesses like yours need a variety of assets to function efficiently on a daily basis. This includes a reliable computer, specialized software and hardware, and a high-quality printer and scanner. Plus, comfortable, functional office furniture and fixtures, along with adequate storage, are crucial to your business's success.
Equipment financing, also known as an equipment loan, allows you to purchase business assets without a large upfront payment. Instead, you make predictable monthly payments that include interest over a specific term. Once you fulfill your payment obligations, you own the equipment outright.
If you need to acquire equipment for your solo business but want to avoid the sizeable upfront costs and the responsibilities that come with ownership, equipment leasing can be an excellent solution. When you lease equipment for your business, you may not need a down payment, and you make manageable lease payments over a set term.
Once you fulfill the payments in your lease agreement, you can discuss the end-of-term options with your lender. You might be able to renew your lease, purchase the equipment for its fair market value, upgrade to newer equipment, or return the equipment.
Different lenders and business funding providers have varying requirements for working capital loans, business lines of credit, equipment financing, and equipment leasing. Banks typically impose stricter qualification criteria, whereas companies like Huddle Business Capital offer more lenient borrowing conditions.
1, 2 - https://www.cnbc.com/2025/09/22/how-to-start-business-ideas-income-opportunities.html
3, 4 - https://founderreports.com/solopreneur-statistics/
This Huddle Business Capital blog article is purely educational and contains general information and opinions; it is not intended to provide advice or recommendations of any kind. Huddle Business Capital is not affiliated with nor endorses the companies mentioned in this article.