Small businesses use various sources of finance available for start-up capital:
- Self-financing by the owner through cash savings, equity loan on his or her home, and or other assets
- Loans or financial gifts from friends or relatives
- Grants from private foundations, government, or other sources
- Private stock issue
- Forming partnerships
- Angel investors
- Loans from banks, credit unions, or other financial institutions
- SME finance, including collateral-based lending and venture capital, given sufficiently sound business venture plans