There are a number of financing options available to entrepreneurs. Here are a few of the most common:
- Self - Depending on your startup costs, you may have enough money available to you through savings or investments to provide your own funding for your enterprise.
- Family and friends - Some entrepreneurs find financing through family members or friends who are willing to invest in their idea.
- Line of credit - Establishing a line of credit will help lessen the number of times your new business will be required to prepay for the products and services it purchases. It also helps establish a favorable credit history, which is helpful as your business begins establishing vendor and supplier relationships. As a subset of this, obtaining a D&B D.U.N.S. number for your business is also advisable. D&B (formerly Dun & Bradstreet) is the resource most often used to check the creditworthiness of a business.
- Business loans - Many entrepreneurs seek outside funding from sources such as banks or through Small Business Administration (SBA) loan programs.
- Debt - If you have a sound credit history and can demonstrate the viability of your business idea, you may be able to borrow money from a bank or alternative financial institution. This type of loan is paid back over a specified period of time.
- Venture capital and equity funding - This type of funding is granted through third party investors who expect a substantial return on their investment. Venexus helps connect entrepreneurs with investors who are seeking projects to fund. .
