Last Updated: Sep 3, 2018
Looking for funding for your business? There are a wide variety of sources available, depending on your needs. Here’s an overview of the most common types of business financing.
Because businesses have different needs than consumers, there is a much wider range of financing options available for business owners. The type of funding appropriate for your business and the availability of it depends on a number of factors, including the amount needed, the intended use of the money, the length of time you need the money for, the financial standing and credit history of the business, and often your personal credit score.
Perhaps the most important thing to know about business financing is that you need to plan for it in advance. If you wait until you’ve nearly run out of cash to try to get a loan, you may not be successful.
Here is a summary of the major types of financing and what each type is typically used for.
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About the author:
Janet Attard is the founder of the award-winning Business Know-How small business web site and information resource. Janet is also the author of The Home Office And Small Business Answer Book and of Business Know-How: An Operational Guide For Home-Based and Micro-Sized Businesses with Limited Budgets. Follow Janet on Twitter and on LinkedIn