Know the Types of Financing for Business Start-up and Sources.
Know the Types of Financing for Business Start-up and Sources. Financing for a business stat-ups is ideal provided the business that requires financing is viable enough to yield profits. Prior to that, you need to But consider how much money you need and when you will need it. The financial needs of a business will vary according to the type and size of the business. For example, processing businesses are usually capital intensive, requiring large amounts of capital. Retail businesses usually require less capital. Debt and equity are the two major sources of financing. Government grants to finance certain aspects of a business may be an option. Also, incentives may be available to locate in certain communities or encourage activities in particular industries. Equity Financing Equity financing means exchanging a portion of the ownership of the business for a financial investment in the business. The ownership stake resulting from an equity investment allows the investor to share in th