Ways to fund your startup business

When a person sets out to start his business, he requires a major help in the monetary form for starting small business. But many times the tension of other issues is so much that they forget to search about the small business funding sources which are available readily. Hence for you to start your business of interest with a potential business vision, idea or project, money as a source of funding is imperative.

Such monetary sources for the early stage venture can be categorized into two main types.

• Bootstrapping: The process of Bootstrapping can be defined as usage of your own finances from the personal savings to second mortgages and starting the venture alone. Early resources in case of Bootstrapping are those of founders’ capital, savings and credit cards. Other kind of bootstrapping resources include sales revenue, second mortgage and venture leasing. In addition, for a startup venture the later sources of bootstrapping include asset backed lending / accounts, lines of credit, receivable factoring SBA loans and government grants.
• Equity Financing: Whereas equity financing is defined as when you decide on business partners and divide the percentage of the ownership in exchange of requisite capital. Some of the early as well as later stage sources in such small business funding are those of corporate venture funds, investment banks, private equity firms, mezzanine financing firms and public markets.

Hence, such important information can act as a successful source in funding a startup venture business without any hurdles.