Finding Money to Start a Small Business

There are several sources to consider when looking for business 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.

Government Money Programs For Small Businesses

The U.S. Federal Government offers a variety of financing options for small businesses.

Whether you are looking for a long-term loan for machinery and equipment, a general working capital loan, a revolving line of credit, a short-term loan, or venture capital, the government has a financing program to fit your needs. You can also access the SBA’s Web site at http://www.sba.gov/financing