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Financing a new business venture is one of the most difficult things you will have to do as a business person. It is usually the next step after identifying a business opportunity that you are willing to venture into.

There are different sources that one can make use of to get their business capital. Every method is different from the other, with some accessible to certain individuals only and others to everyone. Every source has its advantages and disadvantages, and you have to weigh the pros and cons before choosing a particular source.

Here are some of the sources you could use to obtain start-up capital for your business:

1. Capital from friends or family.

If you decide to get your capital from relatives or people close to you, it is important that you both sign an agreement stating the loan amount, the repayment amount, including the interest chargeable and the repayment schedule. This way, you avoid problems in the future. The advantage of this source of capital is that in most cases, the interest charged is very small making it very affordable.

2. Bank loan.

Obtaining a loan from your bank may require that you have a business plan and also meet some requirements. The bank may require some security before giving you the loan.This source of start-up capital may be expensive since most banks charge a high-interest rate. You may also not be able to access the financing if you have a bad credit history.

3. Own savings.

Mot business people started their businesses with small amounts of money they had in their saving. The greatest advantage of this source is that you owe no one any debt. There are also no interest charges.

4. Selling your business shares.

You can also finance your business by selling ownership interests to an interested party. There are no extra costs of using this source of capital. The disadvantage is that you change the structure of the business and may not be the sole owner. You should think through the option of taking this as a source of capital.

5. SBA ensured advances

If you have the capacity to get an advance that is ensured by the Small Business Administration (SBA), then this can be an excellent source of start-up capital for your business. SBA does not really make advances but instead gives you ensures to enable you to get financing from customary banks.

The SBA runs a microloan program that may give you some advance especially if you do not need a large amount of money to start your business. These advances are simple to get, and the set requirements are not so high for new entrepreneurs.

6. Proceeds from sales of items that one does not need.

Most people have old items that they do not use anymore in their homes. Sale of such items could raise some amount that can be used as start-up capital for a small business.