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Capital Sources


   

In order to secure the capital they need, small business owners need to understand the various sources of money that are available to them:

Capital generated internally

Capital available from trade creditors

Borrowed money

Sale of an ownership interest in the business to equity investors.

Each of these capital sources has unique characteristics. These characteristics must be fully understood by the small business owner so that he or she will know what sources are available and which source is best suited to the needs of the business.

 

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