41.Identify+the+types+of+business+financing.

Identify the types of business financing. In other words, where do businesses get the cash they need to grow and operate?

I had found 3 main sources of capital in order to start a business: Loans, Grants, and Venture Capitalists Loans are cash that come from an outside source, commonly a bank, in which you will need to repay the loan plus interest. This can be taken out in order to gain the money needed to start the business and the business owner then can pay back the bank over time. The pro of having a loan is that you get the cash you need upfront; however, the con is that you will need to pay it back... plus interest. Sometimes loans come from friends and family members in which the payback agreement is made between the two parties. Grants are cash that come from outside sources that do not need to be paid back. Grants are not available for for-profit companies. Grants are only awarded to not-for-profit organizations. Venture Capitalists are people that seek out business ventures to invest their money into. These venture capitalists are much like the people that we have viewed on Shark Tank. They will offer to pay a certain amount of money toward the company for a certain amount of stake in the company, meaning that they would own a certain percentage of the company and its future profits. If any one party owns 51% or more of the company, they own the controlling factor of the company.