In case an entrepreneur can not secure funds for financing his business from his own resources then he should seek financing from other sources.
Main types of financing a business are:
- Commercial loans
- Domestic loans
Commercial loans are taken from banks for business development and in agreement with the bank are determined the amount of the loan, the period planned for returning the loan, the bank interest, etc.
It could happen very often that for different reasons the bank will not give the requested loan.
The domestic loan is a matter that is solved between the person taking the loan and the person giving the loan. The period for returning the loan and the terms of return are determined by the parties.
Grants are the funds that business receives from different donors. In most of the cases the grant is not returned to the party giving it but there are cases when party requests its return through different services.
Partnership is a form of partial securing of finance for business development through the help of other persons or businesses that have funds, by sharing the business profit with these financing persons/businesses. Partnerships may be made between two or more parties. The duration of the partnership depends on the agreement between parties.