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When you are faced with financing any business endeavor, whether it’s corporate or you’re going it alone, you have some serious choices to make.  Where is the money going to come from?  Who will help you get the start-up capital you need to make your business go?  You might have to have some kind of equity yourself before anyone is going to have enough faith in you to invest additional funding.  That makes sense, when you think about it.  Unless a person believes in his or her business idea enough to risk something of value to make it go, how can he or she expect investors and bankers to do so?

There are basically two types of equity to help you get started, but it can all come from many different kinds of sources.  Debt financing comes from establishing a line of credit, or an outright loan or loans either from a commercial bank or private investors.  These funds have to be repaid, normally over an established period of repayment at a fixed interest rate.  Financing that comes from angel investors may have other kinds of strings attached, or fewer, depending on the interest they have at stake.  Here is an infographic to help make sense of start up financing and where those dollars can be found.