In as much as small business do not require a large capital base to start off, these funds may not always be readily available. Business owners are therefore forced to look for other strategies through which they can finance their ventures. It is worth noting that one source of finance may be better suited for a given enterprise but not another, especially considering the repayment plan.
One of the most convenient ways of financing a small enterprise is to use ones own savings. This is because, you will be left to repay yourself at your own convenient schedule and even if the venture happens to fail, then you can just let it go without being harassed from left, right and center to repay that money. You might lose your investment, but nobody will be on your neck.
Government grants and loans are also another source of funds. They are cost effective and reliable. The government has established the Small Business Administration agency that assist small enterprises raise funds with which to set up the ventures. The repayment plans are quite pocket friendly and the interest rates are quite affordable even to the smallest venture in terms of turnover.
Another way to finance your venture is to borrow from private lenders. Although their interest rates may be higher than those of the government, they are less likely to reject your loan application on the basis of your financial background, be it good or bad. If this borrowing fails, or does not play music to your ears, then you can consider financing your venture through partnerships, where you and your partners bring in a given amount into the venture, which will be repaid after your enterprise has realized profits.