As a result, their interest rates and other terms may be more favorable than those offered by a bank. The company for which you or another family member works may have a credit union. If you decide to start your business while you are still working for a large company, you may be able to borrow some of the capital you will need from the credit union. The amount you will be able to borrow from a credit union may not be large, but this source of funds may be helpful in making initial purchases for your business. Also, a loan application through a credit union may be more likely to be approved as you may be known to the individual evaluating your loan request.
Venture capital is an investment in an unproven business.
In some industries, potential purchasers of your service may be interested in offering financial help as you start or expand your business. They are interested because as an additional supplier, you provide them with another source for a product or service they need. The addition of your business to the market may also increase price competition, resulting in lower prices for the customer. Getting financing takes persistence. You may be turned down many times before someone agrees to provide funds.