Business funding refers to the money a company raises to start, grow, or sustain its operations. This funding can come from various sources and is essential for covering expenses like inventory, payroll, marketing, equipment, or expansion.
There are two main types:
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Equity funding – Money raised by selling shares in the business to investors (e.g., venture capital, angel investors).
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Debt funding – Money borrowed that must be paid back, usually with interest (e.g., bank loans, lines of credit, business credit cards).
Other funding sources include:
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Personal savings
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Grants
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Crowdfunding
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Government programs