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What are some ways to fund a start-up business?

Starting a new business can be exciting. New ideas might be popping up in your mind constantly. You might be meeting new people and getting your ideas rolling, which can involve creativity and fun, but you'll also need to consider the administrative tasks of a business launch. Specifically, you'll have to consider both legal and financial matters.

One common start-up consideration is how you will fund your business. Depending on the type of business you are planning to start, you might not need much in the way of start-up capital. If your business idea doesn't require inventory or a separate location right away, you can start working on your idea and use money that you make to fund slow growth.

Sometimes, individuals are able to use their own personal savings to fund a start-up, but you have to be careful going this route. There aren't guarantees your business will be successful, so you always want to leave yourself with some personal savings. Another option is to borrow the money via personal credit cards or a home equity loan. Again, since there aren't any guarantees, you want to be careful that you don't leave yourself holding a large amount of debt for a business that can't pay off what you borrowed.

You might also consider a small business loan. This is different than borrowing on your own credit, and you might be able to find loans for small business with favorable terms or tax breaks. Another option is to seek funding from investors that are also excited about your idea. No matter what you do, remember that you have legal choices to make as well. Working with a professional helps you make the right legal and financial choices now to save yourself time and worry in the future.

Source: Money Crashers, "How to Get Money to Start a Business – 8 Startup Financing Options," Christopher Freeburn, accessed May 20, 2016

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