Sources for Funding Available

Running head: FUNDING SOURCES
FUNDING SOURCES
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1 FUNDING SOURCES
Sources for Funding available to Entrepreneurs.
In case of a small business or for a start- up, the sources of funding is very important, and
it can be looked at from two aspects. The Equity Financing and the Debt Financing. The best
options for the sources of investment are, personal investments, venture capital, business angels,
assistance of the government, bank loans, financial bootstrapping and the buyouts. The bank loan
and the venture capital are the two most availed options among the entrepreneurs, however the
practice and the role of the other financial or investment options are also very much in practice
("Loans", 2020). More importantly, the entrepreneurs or the start- up planners include more than
one form of investment plans or financial sources, in order to ensure the successful establishment
of the venture.
Advantages and Disadvantages of Various Options:
First, the Personal Investment. The personal investment is one of the conventional form
of financial planning in case of starting a new business, the advantageous aspects are, one will
understand the availability of money and therefore can plan accordingly, and can exercise more
control on the decision making. Also, it bars one from making excessive expenditures, including
only the necessity aspects, firstly. The disadvantageous positions include, a strain in the personal
life of the person, and also includes certain psychological impacts on one, along with his or her
family ("Loans", 2020). Also, in case of a failure, it leads to a huge loss, from which one may
never entirely recover. Also, the personal investment means founding the business alone,
therefore a lack of contacts and networks.
Second, the bank loans. The bank loans are one of the conventional forms and most
reliable form of financial source, and this includes both, advantageous and disadvantageous