Understanding Funding Options for Main Street Businesses

Money makes the world go round, and if you want to get your startup off the ground, you’ll certainly need to get some. But how do you go about this? First things first, it’s important to break down the three different kinds of funding options available to you:

Private investment

  • Personal savings / retirement
  • Friends & family
  • Angel investors
  • Venture capitalists


  • Business credit card
  • Credit line
  • SBA loan
  • Home equity
  • Equipment financing

Alternative sources

  • Vendor credit
  • Hard money loan
  • Revenue-based loan
  • Merchant cash advance
  • Receivables factoring
  • Purchase order financing

One of the above options will be ideal for your goals. Knowing the kinds of funding options available to you will allow you to find the best one for your particular startup.

Tim McCormack, President of The Finance Store, gives a simplified overview of the three main sources of business funding.