Options for financing a business
There’s many methods for financing your business. See how they work and how they might fit your needs.
1. What is business finance?
It’s important to find funding that fits. Check our questions to get your thinking started.
2. How much do you need?
Knowing how much money you need, and for how long, will help you choose the right type of finance.
3. Debt vs equity finance
Do you want to take on a loan or investors? What are the pros and cons of each?
4. The main types of finance
Learn about the main types of finance that fund most businesses.
5. Getting a business loan
Find out more about business loans, how they work and how to get one.
5.1. Peer-to-peer lending
Peer-to-peer lending is an alternative way to finance your small business. What are the pros and cons?
5.2. Friends and family loans
Using friends and family loans to finance your small business can work if you follow a few rules.
5.3. Invoice financing
Invoice financing can give you access to funds when your cash flow stalls. How does it work?
6. Finding investors
Taking on investors instead of debt is another way to raise small business finance.
6.1. Angel investors vs venture capitalists
Learn the difference between angel investors and venture capitalists.
6.2. Crowdfunding
Crowdfunding can get you the money to build a business and the attention to build a customer base.
7. Small business grants
Small business grants can be a source of funds for some businesses. Learn where to find them.
8. Pitching for business funding
How can you help lenders and investors decide whether to take the risk with you?
9. Get extra support
Once you’ve decided on business finance, you’ll need to execute the strategy. Get tips and tools to help.
This guide is intended as general information only. Always check with a professional for advice.
Xero makes small business software, used by 2.7 million+ subscribers.
Handy resources for small businesses
Since you’re wondering how to start and finance a business, you might find these resources helpful.
Guide to starting a business
Knowing where to begin when you’re starting a business isn’t easy. Check out our tips for all the steps.
Business plan template
Use our templates to help transition from a rough idea to a real-life business.
Guide to invoicing
Don’t let your cash flow suffer. Check out our tips on the art and science of invoicing to help speed up payment.