How Start-up Capital Works

When funding your business venture, you need to decide between debt capital and equity capital. See more corporation pictures.

­When you start a new business, you need money ­to get it off the ground. You need the money to rent or purchase space for the business, furniture and equipment, supplies, professional fees such as legal and accounting, as well as continuing the research and development of your product or service. You may also need money to pay employees. There are several places where you can get the money that a new business needs, but first you need to think about which type of funding will work best for your company.

In this article, we'll tell you about different sources for funding, explain the differences between the various types of financing, help you decide which is best for your company, and give you tips on how to go about getting the funding you need to get your business off to a running start. First, let's look at the types of capital you have to decide between.