guy stacking coins

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. (more…)