Sources of small business financing

Banks are the greatest source of small business financing. Most small businesses are not established in a way that is attractive to investors, who want to put their money in ventures that have huge potential and a defined exit strategy. Plus, most small business capital requirements are much smaller than the size investments most venture capitalists want to spend their time considering.

Banks, on the other hand, make loans as small as a few thousand dollars, and only want their small business borrowers to provide collateral, and repay the loan on-time, with interest.