Which innovative funding options are best suited for your small business?

ONE of the biggest hurdles for any entrepreneur is securing the right type of funding to turn their ideas into reality or grow their business. With so many financing options available these days, it can be overwhelming to determine the best fit.

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The truth is that no single funding option is inherently better than another as each comes with its own benefits, trade-offs and considerations.

So, how do you know which one is right for you and your business? Here’s a breakdown of five of the most common business funding options and what they offer:

Traditional bank loans

Banks have historically been the go-to source of financing for anything, including businesses. A traditional bank loan typically requires a solid credit history, and a detailed business plan. For business owners who want to maintain full control of their company, this type of funding is ideal as banks do not take or request equity in your business. Interest rates are also generally lower than those of alternative lenders, but the application process can be lengthy, with red tape, and approval is not guaranteed — especially for newer businesses without a proven financial track record.

Small business financiers