How to Raise Money for Your Business

                                     How to Raise Money for Your Business

Whether you've been in business one week or five years, an infusion of funds is always welcome. But what type of financing is best for your business? There are so many factors to consider--from the stage of your business to how much it'll cost to get the money--that just choosing a path to follow can be overwhelming.

To help you get your head around the different ways you can finance the growth of your business, we've compiled mini-guides that cover the basic information on 18 different financing sources. Read through our guides to learn the basics, and then start hunting!

18 Funding Sources

1. Startup Financing

Get your business off the ground with cash from several startup sources.

2. Equipment Leasing

Short on cash, but need new equipment to grow? Lease what you need.

3. Community Development Financial Institutions (CDFIs)

So you're not "bankable" according to traditional rules--your community may still have resources to help fund your business.

4. Microloans

When you need only a little cash to grow, it's time to check into microloans.

5. Asset-Based Loans

Use your assets--like accounts receivable and inventory--to help you land funding.

6. Bank-Term Loans

Go with old reliable and get a business loan from the bank.

7. SBA-Guaranteed Loans

The SBA's got your back. With an SBA-guaranteed loan, they'll guarantee as much as 80 percent of the principle.

8. Private Loan Guarantees

You're early stage, the bank is ignoring your pleas--what do you do? Find an investor to guarantee your loan.

9. 504 Loans

If you're buying a fixed-asset like land, buildings or long-term equipment, look into a 504 loan.

10. Royalty Financing

Got a product that will bring in the bucks? Use it to get a loan based on your future sales.

11. Federal Government Venture Capital

SBA-licensed one-stop funding shops SBICs and SSBICs are looking for businesses to fund. Could your business be next?

12. Angel Investors

These individual VC investors seem like they're from heaven, but be prepared to give up a chunk of your company for funding.

13. Business Incubators

Nest in one of these entrepreneurial hotbeds, and you may just be on your way to financing.

14. 401(k) Financing

Fund your new company with your retirement account from your previous job--but watch out for the tax man

15. Direct Public Offerings

Take your business--and your quest for funding--directly to the public by selling shares in your company.

16. Reverse Merger

Take your private company public the easy way by purchasing a dormant, public company.

17. Initial Public Offerings

Ready for a whirlwind ride? Take the ultimate funding trip by going public. This guide will help you prepare.

18. Institutional Venture Capital

VC funding isn't always easy to obtain and and you'll have to give up equity, but when you're a high-growth company with high-financing needs, it can be your best bet.