Today’s post is the first in a series that will explore the advantages and disadvantages of different types of financing, specifically debt vs. equity. In this initial post, I’ve highlighted some of advantages and disadvantages to using equity financing instead of debt financing in your small business.

It seems as though many start-up businesses are eager to jump on the equity bandwagon without ever considering debt financing. While investor money comes without the hassle of repayment or interest, it also comes with the significant burden of having to share profits with the investor. Despite the fact that you have to share profits with your investors, there are a number of advantages to using equity financing for your business.

The Advantages

Lower risk. Generally,…

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I stumbled across an article that provided three online resources for small businesses in need of funding. Below is a summary of the article, including the three online resources mentioned.

In recent years, it has become increasingly difficult to secure the necessary capital to start and grow a business. Not only is it difficult to raise capital from traditional lenders, but the different types of lending options has also grown, which can be overwhelming when choosing what option is best for your small business. Below is a list of three online tools that will help you decide what financing option is best for you:

Intuit Loan Finder: Intuit is a financial software-manufacturer based out of Mountain View, California. Intuit’s Loan Finder is…

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Today I came across an article that noted small business owners’ concerns for the immediate future of small business in the U.S. At a town-hall meeting at Small Business Week 2012, entrepreneurs from a wide-range of industries gathered to voice their concerns. The annual meeting, held in Washington D.C., kicks off the National Small Business Week.

Small Business Administration (SBA) administrator Karen Mills started the meeting by discussing how small businesses can help create a healthier economy. She noted that the SBA had a record year, as it guaranteed over $30 billion in loans to small businesses.

Despite the record year for the SBA, many attending entrepreneurs still had serious concerns with three areas in particular:

Access to capital. The attendees repeatedly voiced…

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In the wake of the recent passage of the JOBS Act, a group of top debt and equity crowdfunding platform experts launched the Crowdfunding Professional Association (CfPA). Yesterday in New York City, an excited, growing community of crowdfunding proponents gathered with the goal of uniting the many voices powering this “historic breakthrough in capital creation.”

Crowdfunding, in very simple terms, allows startups and other businesses to raise up to $1 million per year from investors through online funding portals (websites). Check out this article for a comprehensive rundown of crowdfunding in plain English terms.

Berkeley Geddes, chair of the CfPA executive committee, recently told Street Fight that “crowdfunding gives a chance to the entrepreneur who was not born into privilege to create…

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