Most banks or financing programs will not fund one hundred percent of the needed money. Therefore, your available funds should be used to fund a portion of the overall needed financing. Most banks and financing programs require twenty to fifty percent of the needed money to come from you. Some special programs, such as the MicroLoan program, may only require ten percent of your own money depending on the situation. This type of financing is unusual.
Equity investors are people who invest money in the business in return for part of the ownership.
Your portion of the investment may be your work and efforts. In other words, you do the work and they provide the capital to help make the business grow. Options for Financing There are as many ways to finance your business as there are businesses. They divide roughly into two different types. Debt Financing Debt financing is any kind of loan.