The first source of green funding must come from the founders, i.e. a combination of sweat equity and personal borrowings. Although green is best, it is also the most expensive form of financing because it means selling a piece of the business - the earlier, the bigger the slice. That's why a continuous progression, in sync with the development of the business, is the optimal approach. Usually this money comes in the form of grants, interest-free loans, and other forms of assistance. Yellow money is as good as gold.
Red money comes from debt-oriented lenders.
This includes banks, factoring houses, leasing companies, and other lenders. It is red because it is onerous and too much of it may cause you to stop in your tracks. Our chartered banks will all gladly lend money if it is secured and if your cash flow can cover the interest payments. Funding a company is an exercise in packaging. There should always be a nice rainbow of colors in the corporate finance strategy.