On top of that, the interest on credit card loans is high, and it can start to accumulate the moment you make your first withdrawal. Family and Friends. If you're willing to mix family and business, this often is the best way to finance your start-up. The upside is that rates and terms are flexible. The downside is that if you stumble, you risk not just bankruptcy but also alienating close family or friends.
Angels are private investors looking for new business investments.
Angels are often enlisted when the business is too small to attract venture capital money. But keep in mind that with equity financing you are required to give the investor a stake in the business. This means that the investor will have a share in both the profits and the control of the business. With Angels, however, the terms are often less demanding than they would be with a venture capital firm. SBA Loans are also an excellent option for businesses that have been in existence for less than 2 years.