Show Me The Money, Part I

In the first of a two-part series on funding your startup, the author gives the lowdown on loans, equity investment, and grants

Getting access to funding when you need it is essential to both emerging and established businesses. So where can you find it? There are far more sourceswhich are far more accessiblethan you may have imagined.

In addition to maxing out my credit cards (yep, I admit it), I’ve funded my own startups in a lot of ways: I factored invoices (sometimes), used a bank credit line (constantly), and took venture capital (onceand then I started my own fund). Your capital acquisition strategy may include a combination of funding sources. It’s smart to diversify, and a blend of debt, equity, and possibly grants is a great idea. Let’s look at debt-based financing first.

Bank and SBA Loans

Upside: Debt only

Downside: Can be hard to get; excessive paperwork

Banks Determine which bank in your community understands the type of company you have. Every six months or so, ask for an increase on your credit-card limit and on your line of credit. Each small increment is worth something.

SBA loans The...