Another source of financing I may utilize is borrowings from my relatives or friends who would be willing to lend me some money, which I could repay once the business is making profit.
Moreover, I may seek potential business partners who have the financial capability to answer the capital needs of the small company. As such, they may become co-owners, thus, be entitled to receive portion of the earnings of the business.
Aside from these, I may also utilize external financing sources to address my capital requirements. In this regard, I can resort to borrowing funds from banks and other financial institutions2 that specialize in dealing with business entities and implement special lending schemes for start-up enterprises. In addition, I can borrow from specific government development agencies that support small-scale industries or apply in organizations that give out business grants for creative entrepreneurs3.
It should be noted that borrowing, deemed as long-term loan, from external sources entails risk exposure, therefore, this option is usually a major decision for small businesses. Given this, I should ensure that the company has the ability to service this loan including interest and that the loan terms are not burdensome to meet for small business owners like me.
The capital gathered from these sources would be ...Show more