FAQ Sheets Financing Options Obtaining financing for starting or operating a small business can be the most difficult task an entrepreneur must face. The myth that there is free government money or grants readily available for anyone interested and willing to start a business is simply NOT true. However, by spending time and effort researching available options and constructing a solid business plan , many entrepreneurs are able to take advantage of various loan and incentive programs designed to enhance small business development. Entrepreneurs must make numerous decisions regarding the type of financing they desire and the various methods of obtaining it.
Many businesses use a combination of both debt and equity financing.
Individual private investors - may invest with either debt or equity or combinations. The investors primary objective is to make a sizeable return on their investment, and they take an active role alongside management. Industrial Development Bonds and Local Development Companies. They may be available from local, state or federal agencies, as well as private industry and foundations. Finances a portion of a business fixed asset acquisition with a fixed interest rate loan in combination with third party financing and equity.