External Funding: Methods and sources of capital to fund your business
When internal bootstrapping measures have run out, you need to look at your external funding options. Realize that some options are easier, or more likely to succeed, than others. You will need to assess what is available to you, and makes the best fit for your business.
- Loans from Commercial-Rate Lenders
- Loans from Motivated (High-Cost) Lenders
- Loans or Investments from Family/Friends/Fools and Trade Credit
- Owner Loans/Retained Earnings/Owners Equity Investments (when the business is generating a positive cash flow
- Owner Capital (personal savings, home equity credit line, etc.)