Kinyachda A. Powell Week 3: Funding the Business November 12, 2017 Dr. Leon Daniel, Jr. Describe the various types of funding available to a business, and include at least three examples. Having a business requires a lot of work. In the beginning one of the most important things that your company will have to determine is what kind of funding that is needed for your business. With the various options that are available such as getting a bank loan, finding an investor/equity financing, using your own money, or government programs. You really need to analyze which option is best for your business. With each option you will have advantages and disadvantages. Like they say you win some and you lose some, but you must take that chance if you are serious about having a business. Explain the advantages and disadvantages of each type of funding. Explain the advantages and disadvantages of each type of funding. …show more content…
When getting a bank loan, you will have access to a set amount of funds that you will have to repay. You will be held accountable for paying back the loan and the interest. However, bank loans can be hard to receive because they are not guaranteed. To apply for a bank loan, you must present a business proposal or plan that includes why the funding is needed, and proof that the business will be successful. The advantage of this option is they might grant you the loan. The biggest disadvantage to this option is that you will have to pay the loan back along with interest. Another disadvantage is you are fully responsible for any risks that may occur and are financially responsible, even if your company is not