The banking industry is an important source of working capital. However, entrepreneurs may not realize that applying for commercial credit is a more customized process than obtaining consumer credit, and requires a great deal of preparation by the business applicant.

Small Businesses Loan Sources:

• Self-financing by the owner through an equity loan on his or her home or other assets.

• Loans from friends or relatives

• Private stock issue

• Forming partnerships

• Venture capital, given sufficiently sound business venture plans