Inadequate money causes many start small businesses to go belly up as they do not have enough cash to meet the cash needs.The business survival is threatened because of the lack of cash even though you may have all the other posssible things like an amazing product or well an idea that can potentially generate millions.

As a small business owner you have several options available to you for financing which can come in handy during various stages of the business.

Grants For Small Business – Grants are avilable for small businesses from the state, federal or local government organization however they are hard to come by and have stringent eligibility criteria.The best thing about these grants is that there is no repayment of these grants. The sectors like Health Care Employment

Personal Finances – This method is definitely for some short term requirements and to tide over the initial costs but it is not suitable for the long term costs as well as for any sort equipment or capital expenditures.

Debt Financing – Banks -  The Most easily avilable source of debt finnacing is banks. You will need a collateral or an asset to secure a loan such as an equipment, inventory or accounts receivable.The loan is available for a specific purpose and is repayable over a period of years.

Debt Financing -  SBA – Another option within debt financing is securing an SBA loan. The Small Business Adminsitration does not fund the loan but yes provides a gurantee to the loans mamde by the banks and other financial institutions. The SBa has variety of loan guarantee programs available and they also offer micro loans.

Some other types of debt finacing options available are leasing,trade credit,credit cards,community programs,micro loan opportunities and other private lending organization.

Equity Financing – This means that you exchange a part of the company in lieu of capital.

The two main options available under this are the Stock Offerings. In Stock offerings you can garner huge capital inflows but before doing that you will have to make sure that you are in complianvce with regulatory norms and tax issues. It can time consuming and will require experts to go for stock offerings.

The other option is venture capital funding whereby it is the business of few companies to invest in comapnies that show potential and they pick up an equity stake in your business and will have the say in running of the company.

Before making any decision on which route to go make sure that you have explored all the alterNatives especiall the grants for small business as that is essentially the most owner friendly option. Also explore another route to bring recoginition to your business via internet ads and that will mean that you can then get private equity or venture capitalists interested.