The culture of entrepreneurship has seen a phenomenal expanse across the globe in the past couple of decades. There was a time when the companies used to target the needs and demand of the common public. In today's fast-moving world, requirements are created, or the public is made to realize that they are in need of a product or service which they are not aware of, and the new generation businesses are targeting such latent demands. The public has well-accepted businesses with healthy and practical ideas.

However, such ideas get support from many factors in the external environment. There are no fewer cases when creative and strong business ideas have been crushed midway before having been able to convert into profitable ventures. One of the factors for such failures is money. If you do not feed a business with the fuel called money, they are bound to vanish within a short period.

Business and money requirements

Money keeps a business alive and running. If you have sufficient capital to convert your ideas into a company and keep it running till it starts generating profits, it would be a utopic situation. However, that is not the case most of the times. Hence, it is utmost crucial to arrange for funds as per the requirement at different stages of a business from a wide range of sources available.

You can get started with your savings, or you can call for investors who are interested and have a strong belief in the feasibility of your business idea, you can arrange for funds from your friends or relatives, or you can apply for loans from various institutions and financing companies such as Liberty Lending US. The options at hand are numerous. You only need to choose the one that you can afford and best suits your needs. Have a look at some of the most commonly available sources of financing for small to mid-scale businesses:

• Finance from family and friends - One of the best sources of funds is friends and relatives. This source can prove to be helpful, as this doesn't require one to go through formalities or complex procedures and the rate of interest and repayment terms are also very flexible. Many new ventures or business ideas bloom with the aid of money sourced from family members or friends. The best part is they don't need to check your credit score calculated by credit rating agencies. However, a major risk involved in this case is that the relationship is on a stake. If you aren't able to payback as agreed upon or because of your business's failure, you might have to do away with the relationship forever.

• Crowdfunding - One of the newest inventions of the modern day is crowdfunding. Do you have a business idea that is robust enough for making others believe in it? If yes, then choose a crowdfunding platform, pitch your business idea, and let the money come in from the believers who either are willing to donate money or the ones who had pre-booked your products or services. The biggest advantage of this option is that it promotes and advertises your business and brand and you can also gauge the kind of interest and curiosity your product or service is generating in the minds of your target population. But again, the flip side here is that you can’t showcase much than the details of your idea, your expected course of action and a few images. If your idea is excellent and fascinating, then crowdfunding can be your cup of tea.

• Small business Administration loans or SBA loans - This loan is ideal for new start-ups or small businesses. SBA is a government organization that acts as an intermediate or between the lenders and fund seekers. They offer loans at pretty competitive rates and lower down payments, as every loan is guaranteed up to 80% by the government. The reduced risk for the money lenders and lower rates of interest offered makes it a very lucrative and convenient option. However, if you are in urgent need of funds, this source may not be the right choice for you, as the sanction of loans takes some time.

• Personal loans - A good option of funding can be personal loans. If you have a start-up or a small-scale business and a strong creditworthiness, then you can go for what is called personal loans. There are provisions which allow you to use the money you take under your name for your business ventures. The rates of interest are quite competitive, and one can qualify for these loans without undergoing many complexities. But a flip side to this option is that your personal belongings or assets are at stake since the loan is personal. So, if your business doesn't turn out to be profitable, or it just fails, then your personal belongings kept as collateral are gone forever.

• Business credit cards are another excellent source of funding during the initial stages of your business. These are easy to apply, and they don't take much time to get sanctioned. You can finance your day to day expenditure, fund your asset purchases and sponsor your advertisement and promotion campaigns. Credit cards, also offer rewards such as discounts on purchase of products or services from their partners or associates, cash back facilities, extra services or privileges during flying with specific airlines and so on. Hence, credit cards prove to be a convenient and a handy source of funds for your business.

• Credit card from vendors - One of the most popular and widely accepted sources of short-term financing for a new business or a small-scale business is credit from vendors. This alternative mode of financing often replaces business and personal loans. In layman terms, this method of funding lets you defer your payment to the vendors or creditors, hence allowing you to buy some time to either arrange for funds or let cash flow in from debtors or utilize the money you already have for other urgent needs and requirements.

The key to funding for any business is a rock-solid business idea. If you have an idea that makes good sense and convinces your audience, then money will sure flow in!