What is the best way to fund your business?

There are many different ways for you to fund your business. There are two main categories when it comes financing –  debt financing and equity financing. Under each one of these two categories comes many more options on financing.

One of the more popular ways of equity financing is to use an angel investor, on average a angel investor will invest from about 25 to 100 thousand dollars into a company but this can differ. There are lots of different questions and things you will need to be prepared for when looking to find a angel investor for your business. Check out this article by Richard Horroch for 20 different things you should know about angel investors.

Bank loans sometimes come with a much more negative perception when it comes to borrowing big amounts of money. Depending on the stage of growth your business is in and the amount of money that you need this could be a good option. Bank loans are one of the main two ways that debt financing is used, bank loans come with a much lower cost of capital then most equity financing options. In this article by Brent Gleeson he talks about both bank loans and angle investors.

 

 

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