How do I get financing for a small business?

There are many ways to find financing for a small business. Debt financing is usually offered by a financial institution; it requires regular monthly payments until the debt is paid off. In equity financing, either a firm or an individual invests in your business (and you don’t have to pay the money back).

What are the different types of financing?

There are two types of financing: equity financing and debt financing. The main advantage of equity financing is that there is no obligation to repay the money acquired through it. Equity financing places no additional financial burden on the company, though the downside is quite large.

How do I choose the best financing option for my business?

Keep in mind that no two businesses are the same—only you know the ins and outs of your company’s needs. By weighing the risks and rewards of each funding option, along with your personal finances, predicted startup costs, and business expenses, you can select the best option for financing your business.