STEP 10: Getting credit and financing
It would be great to start a business as a wealthy individual, which may or may not be the case, but at some point you may need to consider raising capital for your business. This could be an initial outlay for starting the business and getting it off the ground, or could take the form of finances to help your business grow and expand. Financing can be debt or equity. Debt is borrowing money – whether that is banks, investors, family or friends. Equity is selling a part or percentage of the ownership of your business, which is done by issuing shares to investors or the admitting of a partner. When considering gaining funds for the business, consulting with an accountant is highly recommended as the legalities can be complex and if you are making a loan to your own business then you want to protect your investment.