What is business finance and its importance?

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Business finance provides the foundation for business growth and survival. You need finance to buy new assets, pay salaries, invest in marketing, and cover gaps in cash flow.

How can I finance my business?

There are several ways to finance your business. The options available to you depend on the size and age of your business. Business owners can use bank loans, credit cards, and savings to raise money for their businesses. Another popular source of business finance is non-bank lenders such as Lulalend, who offer simple application processes, fast decision making and do not require collateral.

What are the types of business finance?

There are two main types of business finance: debt finance and equity finance. Debt financing is when you borrow funds from a lender. Equity financing is when a lender gives you cash in exchange for equity and part-ownership of your business.

What is the best financing option for a business?

The best financing option for your business depends on your situation. Some business owners can tap into funds from friends and family. Others can use their own savings. These are easy ways to finance your business but not everyone has access to these types of business finance. This is where external business finance from lenders can help SMEs grow.