It is defined as the funding we need for commercial purposes. Business finance is the money business owners require to start, run or expand a business. If you already have the money, then this is used. However, if you don’t there are several option to avail one.
Types of Business Finance:
Investment Finance. It involves selling part of your business. This is done by selling shares to investors. Bear in mind that when doing this you may lose some control. If the investor buys shares, he or she will also receive a share of the profits your business makes.
Crowd Funding. This is becoming an increasingly popular way of getting Business finance. It is commonly called as crowd-source capital or crowd financing. Today, most people use the Internet for crowd funding. The aim is to get as many small investors as possible. There are many websites dedicated to crowd funding.
Loan. This is the common way of getting a business finance, to borrow money. With a loan, the borrower agrees to repay over a specific period. With a loan, you do not sell any shares therefore you do not lose your independence. People usually get business loans from banks. Community development finance institutions and other businesses also offer financial loans.