4th Nov 2009 by Daniel Cross, ChFC
There are two types of financing; equity and debt. Equity financing when purchasing a business can obtained by putting in one's own money or through venture capitalists which invest money hoping to gain a substantial profit through the underlying businesses growth. Debt financing is the more common approach and can be done through the bank. Micro-loans are offered for anything under $50,000.00 and tradition business loans are given for higher amounts. When applying for such loans, a business plan is required to show the loan officer why they would want to invest the banks money into the business. Information regarding how to write a business plan can be found online and many colleges have Small Business Development Centers which offer one day courses on how to prepare a professional business plan to take to the bank.
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