If you don’t know who the fool is on the deal, it’s you!
...Michael Wolff

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Capital : any form of wealth employed to produce more wealth
Fixed capital : to purchase a company’s permanent or fixed assets such as land, buildings, computers, and equipment
Working capital : to support a business’s short-term operations
Growth capital : to finance a company’s growth or its expansion in a new direction

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Equity capital : represents the personal investment of the owner (s) of a company
Debt capital : the financing that a small business owner has borrowed and must repay with interest

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Personal savings
Friends and family members
Angels
Partners
Corporate venture capital
Venture capital companies
Public stock sale

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Private investors , wealthy individuals, entrepreneurs themselves, who provide money in exchange for equity stakes
Ranging from $10,000 to $2M
Every year: 230,000 angels , $23 B, 50,000 companies
Average: 10% of opportunities, 2 investments per year, $80,000 in 3.5 firms
Angel networks : 200
Patient money

$3-10M
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Competent management
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Competitive edge
Growth industry
Viable exit strategy
Intangible factors

Advantages
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Ability to raise large amounts of capital
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Improved corporate image
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Improved access to future financing
Use of stock for acquisitions
Listing on a stock exchange

Disadvantages
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Dilution of ownership
Loss of control
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Loss of privacy
Reporting to SEC
Filing expenses
Accountability to shareholders
Pressure for short-term performance
Demands of time and timing

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Commercial banks
Non-banks
Federally-sponsored programs
State and Local
Development
Programs
Internal methods of financing

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Short-term loans
Commercial loans
Lines of credit
Floor-planning
Intermediate and long-term loans
Installment loan
Term loan

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Asset-based lenders
Vendor financing
Equipment suppliers
Commercial finance companies
Savings and loan associations
Stock brokerage houses
Insurance companies
Credit unions
Bonds
Private placements
Small business investment companies
Small business lending companies

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Economic Development Administration
Department of Housing and Urban Development
Department of Agriculture’s Rural Cooperative Service
Small Business Innovation Research Program
Small Business Technology Transfer Program
Small Business Administration

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Low Doc Loan Program
SBA Express Program
7A Loan Guaranty Program
CAPLine Program
Loans Involving International Trade
Section 504 Certified Development Company
Program
Microloan Program
Prequalification Loan Program
Disaster Loans

State and Local Loan
Development Programs
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Capital access programs : encourages lending institutions to make loans to businesses that do not qualify for traditional financing because of higher risk
Revolving loan funds : offered by communities that combine private and public funds to make loans to small businesses, often at below-market interest rates

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Factoring accounts receivable
Leasing
Credit cards