Getting Your Home Business Financed

Businesses without funds exist only in minds. A brilliant idea is equal to zero without sufficient funds in hands. It is always a more satisfying feeling to start and fell short than dreaming of success all the time and never actually starting. Biggest obstacle for these potential startups is the lack of finance. If some unique idea has sparked into your mind and you are ready to give it a try then start with preparing a business plan and assigning costs, this will give you an idea on how much finance you need for this business. Next step is to decide your source of finance.
Commercial Banks:
Commercial banks are a good source of business loans when it comes to businesses that already exist. However, the chances that they will grant you a business loan for starting a business are quite dim. Nevertheless you can go for personal loan (sometimes even business loan) if your credit history is good. If you are able to present your business plan smartly and ensure them that you have got the experience and skills needed to turn it into a success, you will most probably get your loan application approved.
Venture capitalist & Traditional lenders:
Some investors want much more than what financial markets, securities or bonds have to offer. They are ready to take risk, when they see the chances that some investment can bring much more profits than any other investment alternative. Venture capitalists lend funds to small business startups, it's up to you that how do you convince and lure these lenders into funding your business.
Government financing Small Businesses:
Another resort to get your home business financed is going to the small business administrations and development authorities of your country. These authorities and administrative bodies often provide small business loans to get started. They are keen to help small businesses because this industry can contribute a lot in the overall GDP and economy of the country. You can either choose debt financing or equity financing.
Personal Family & Friends:
Some online businesses really don't need a lot of investment to get started. You can start with an initial setup of PC, telephone or fax machine placed in a small room. Some people will find it hard to borrow from their family members or friends but this is indeed a realistic option. You don't have to go into formalities, just discuss your business plan and enthusiasm with the person (ideally your parents) and if he/she is convinced, you'll be having cash in your hands instantly.
Additional resources:
Credit cards can be another option, although not good for long term financing. Other sources are finance companies and mergers. But the problem with these alternatives is that you are not totally independent in your business decisions, which actually spoils the charm of running your own business.