Now that we have gone over the analysis on paper of your business, we will talk about the different ways of getting money for your business. Generally, there are two sources of financing, which we have already discussed earlier in the module: Debt and equity.

The types and amounts of each will determine the Capital Structure of your business, which is the levels of debt and equity that have gone into financing a business. Depending on your business, specifically the information on your business found in the financial analysis done earlier, you will want different levels of debt and equity. We will first look at what the various sources of financing are, then the advantages and disadvantages of each.