Explore all your options before making a decision. It is often said that small businesses have difficulty borrowing money. This is not necessarily true. The primary source of capital for most new businesses comes from savings and other forms of personal resources. While credit cards are often used to finance business needs, there may be better options available, even for very small loans.
Many entrepreneurs look to private resources such as friends and family when starting a business.
Often, money is loaned interest-free or at a very low interest rate which can be beneficial when getting started. Banks and credit unions are the most common source of financing if you can show that your business is sound. Venture capital firms provide money needed for expansion in exchange for equity or part ownership. Borrowing Money Banks make money by lending money. However, the inexperience of many small business owners in financial matters often prompts banks to deny loan requests.