The advantages of using your own money are there are no finance charges, and it cuts down on your search for funds. The disadvantages are you lose the interest you could be earning on your money, and you also lose the cushion for any future emergencies if you use your savings now. The advantages of borrowing from friends and relatives are they are less likely to make demands on your style of management, and there is no legal limit on how much you can borrow. Another advantage is that the terms of borrowing can be negotiated and usually are more flexible. The disadvantage centers on the potential problems that may arise if the money isn't paid back on time.
All banks have a commercial banking division.
Since the banking industry was deregulated, many savings and loan associations also engage in commercial banking. When applying for money from either a bank or individual investor, show a willingness to invest your own money. Banks will require collateral to secure their loan against total loss in the event of default. In other words, to obtain funding, the amount of cash or other assets which you will need will depend on the potential success of your business and the level of risk as evaluated by the lender. You must be willing to risk your assets if you expect others to risk theirs.