Funding OptionsBank loans: Another alternative to a bank loan is angel funding. Banks will require security for the loan which is why many entrepreneurs turn to VC/PE or angel funding. Angel Investors: A term used for private, wealthy individuals that generally invest in young start-up companies, angel investments are sometimes made in exchange for equity or could be in the form of a loan. Micro-financing: If a company is looking for very small amounts, micro-financing is a good route to take. Micro-financers are organisations which offer finance quickly without requiring security. Great for immediate funding but interest rates can be extremely high. Government Funds: Some of these are readily accessible but the paperwork can take a lot of time. Incubators: An incubator is a facility from which various support services are provided to small start-up companies at special rates. The support services usually include physical infrastructure such as bandwidth and office space, but can also include mentoring or referral services.
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