A guide to funding a small business

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A guide to funding a small business
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Why the Wrong Funding Choice Can Cost You More
Than Money
Choosing the wrong path when funding a small
business can create long-term problems. Its not
just about getting cash flow, its about what you
might give up in return. Equity financing can
seem attractive, especially if you need large
sums quickly. But taking money from venture
capitalists or angel investors means giving up
ownership. These investors often want a say in
how your business runs. That means less control
over decisions like hiring, pricing, or even
whether to sell.
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What Are the Main Funding Options Available?
There are several ways of funding a small
business, each with pros and cons. Here's a
breakdown to help you find the best match for
your needs.
Traditional Small Business Loans
These are the most familiar type of small
business loan funding. You borrow a lump sum and
repay it with interest over time. If your credit
score and revenue are strong, this is one of the
best options for small business loans. Pros You
keep full ownership. Repayments are
predictable. Cons Can be hard to qualify for.
The process is slower.
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Equity Financing
Equity financing involves giving up shares in
exchange for funds. Common among startups and
high-growth companies. Pros No repayment
pressure. Cons You give up some control.
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Crowdfunding and Peer Lending
Raise money from supporters or use online
platforms like Kickstarter. Pros No equity
loss. Good for early products. Cons Uncertain
results. Campaigns take effort.
Business Lines of Credit
A business line of credit works like a credit
card. Borrow what you need, when you need
it. Pros Flexible. Helps with irregular cash
flow. Cons Interest rates can be high.
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How to Choose the Right Path for Your Business

• Theres no single way of funding a small
  business. The right choice depends on your goals,
  how fast you need cash, and how much control you
  want to keep.
• Ask yourself
• Do I need the money now or can I wait?
• Will I be able to manage monthly repayments?
• Am I willing to give up a share of my company?
• Is my business plan strong enough for banks or
  investors?

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How to Fund Without Losing Control
When funding a small business, keeping control
should be top of mind. Ownership isnt just about
shares its about the power to steer your
company your way. Equity financing offers growth
but reduces control. Investors may want to
influence hiring, pricing, or expansion
plans. To stay in control, loan programs and
small business grants are often the better route.
Revenue-based financing sits in the middle. You
keep control, and repayment is based on earnings,
but fees can be high.
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The Hybrid Approach

• A hybrid approach to funding a small business
  blends multiple sources. This strategy spreads
  risk and offers flexibility.
• You might use a microloan for quick needs and
  combine it with a line of credit to handle
  seasonal demand. Others might start with
  crowdfunding and later pursue small business loan
  funding once revenue stabilizes.
• This approach works when
• Your needs vary by project
• You want to avoid overreliance on one type
• You value flexibility and control

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Why Choose Biz2Credit?

• Trusted partner for franchise funding
• Biz2Credit was founded in 2007 and has provided
  more than 10 billion in loans.
• Dedicated support team
• Tailored financing solutions

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Thank You