What is available.
WHAT PERSONAL FUNDING MEANS
Your own savings, and money from family and friends.
WHAT IT PROVIDES
Speed and simplicity.
WHAT IT RISKS
Personal finances and relationships.
WHAT DEBT PROVIDES
Capital without giving up ownership.
WHAT IT REQUIRES
Repayment regardless of how the business performs.
WHO PROVIDES IT
Banks Development finance institutions Cooperative and microfinance lenders Suppliers, through credit terms Equipment financiers
WHAT EQUITY MEANS
Selling a share of the business.
WHAT IT PROVIDES
Capital with no repayment obligation.
WHAT IT COSTS
Permanent ownership, and usually some control.
WHO PROVIDES IT
Angel investors Venture capital funds Strategic or corporate investors
WHAT GRANTS PROVIDE
Money with no repayment and no ownership given up.
WHAT THEY REQUIRE
Meeting criteria, applying, and reporting afterwards.
WHAT REVENUE-BASED ARRANGEMENTS DO
Repay from a share of revenue until a multiple is reached.
WHO THEY SUIT
Businesses with revenue but without assets to secure lending.
WHAT CUSTOMER FUNDING MEANS
Deposits, prepayment and advance contracts.
WHY IT IS UNDERUSED
It is the cheapest capital available and it requires nothing but asking.
WHAT TO CONSIDER FIRST
Whether customers could fund it.
