Finding the Money You Need
There are several sources to consider when looking for financing. It is important
to explore all of your options before making a decision.
Personal savings: The primary source of capital for most new businesses
comes from savings and other forms of personal resources. While credit cards
are often used to finance business needs, there may be better options available,
even for very small loans.
Friends and relatives: Many entrepreneurs look to private sources such
as friends and family when starting out in a business venture. Often, money
is loaned interest- free or at a low interest rate, which can be beneficial
when getting started.
Banks and credit unions: The most common source of funding, banks and
credit unions will provide a loan if you can show that your business proposal
is sound.
Venture capital firms: These firms help expanding companies grow in
exchange for equity or partial ownership.
Source: U.S. Small Business Administration
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