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Business funding describes the way in which a business or commercial enterprise is initially capitalized and funded over time. Business funding is a very generic term that could be used to describe a whole host of financing available to businesses and commercial enterprises of all kinds. For example, small business funding, new business funding, equipment financing, bridge financing and commercial real estate financing are all forms of business funding. Like business financing, business funding can also come in the form of either debt financing or equity financing. Because of the broad scope of areas covered by the term, as one can imagine, business loans are available from a variety of sources depending upon the type of funding sought.
Some of these sources include commercial banks, finance companies, investment funds, private individuals and government entities. Small business funding in particular is a highly sought after form of business financing because of the tremendous number of small businesses in existence and the difficulty small businesses usually encounter in obtaining business start up funding compared to the amount of funding available to larger business enterprises.
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