Financing a small business does not have to be complicated, as there are a number of resources that can help you along the way, as well as numerous financial and government institutions that cater to those wishing to finance a small business.
What will the capital be used for and what industry does the small business operate under? Equity financing is looked at as the amount of equity to debt ratio that you have in the business. The biggest resource of equity financing comes from venture capitalists. Debt financing can be obtained through banks, credit unions, lending companies and other financial institutions that offer services to small business owners. The government, both on the federal and local level, also has numerous programs in place to assist people in securing financing for small business.
One of the most common places to look for financing opportunities is with the United States Small Business Administration. This entity has a number of programs in place, including special financing programs for women, veterans and Native Americans who wish to secure funds for a small business. The U.S. Small Business Administration has a comprehensive website that explains in detail all of their available financing programs.
Another source of funds for small businesses come in the form of grants. Before using debt financing to fund a small business, it is wise to first exhaust all other avenues.