Financing for your business may be obtained from private investors, lenders and other financial institutions. In Colorado, most new businesses are initially financed by personal investments from the owner, family, friends and personal business contacts. While it is not impossible, it is often more difficult for new businesses to obtain outside financing. The vast majority of outside financing for small businesses comes from commercial banks, savings and loan institutions. Commercial finance companies, leasing companies, insurance companies, and private or public stock offerings are other financing vehicles that may suit a particular small company’s needs. The next three sections review the different financing sources and some of the advantages, disadvantages and limitations of each resource.
