Most people think of Business funding as loans, but there are many ways to get operating capital for your business. For any of them you will have to do some of the basic footwork to create good business fundability such as obtaining vendor credit, getting a few business credit cards, and opening a business bank account. However, each source of business funds look at those things differently. You can find out how to build your company's credit within the Business Fundability System. When you are ready and need a source of cash for your business you should stop and think about what you need the money for, how your business fundability looks and if you can repay the money.

The reason for the last part is there are two types of business funds that do not require repayment, and a third that doesn't require repayment in the strictest terms. Bank Loans The obvious source of cash for your business is a straight loan from a bank. Getting a loan in your business' name isn't tricky, but it can be difficult if you aren't established. You will need very good business credit built up, have a reasonable source of income from your business to repay the loan plus interest. Grants have the huge advantage of offering businesses various amounts of capital without requiring repayment.

You won't have to pay back the initial loan or any form of interest. However, getting a grant can be quite frustrating. First you have to find the grant that applies to your specific situation. Then you have to generate a compelling grant proposal and convince the grant committee you deserve the money. Once you get the grant you're not done. You have to use the money exactly as you promise to according to the grant stipulations or according to your application. Some grants have other stipulations such as creation of a certain product or service. Some are given to provide working situations for minorities or other priorities according to the grant description and you must adhere to them. Venture Capitalists Getting money from a venture capitalist is another way to get money you do not technically have to pay back.

There are no loan payments, there is no interest, but you will have to give them a portion of ownership in your company and their share of the profits you eventually make. Many times a venture capitalist will be a silent partner, but at other times they may step in and take charge if your business isn't showing the productivity that is expected, or making profits the way it should. Personal Financing The final way of getting money for your business is to scrape it together yourself from outside jobs, or from friends and family. Depending on the source of this capital you may not have to pay it back. Other times you may be able to pay back the money as you can without worrying about being on time with a payment, and this type of capital may even be interest free if you get the money from your own work or from family members.