{"id":281797,"date":"2024-10-08T10:25:26","date_gmt":"2024-10-07T22:25:26","guid":{"rendered":"https:\/\/www.reckon.com\/nz\/?post_type=sbh&p=281797"},"modified":"2024-10-08T10:25:34","modified_gmt":"2024-10-07T22:25:34","slug":"types-of-business-funding","status":"publish","type":"sbh","link":"https:\/\/www.reckon.com\/nz\/small-business-resources\/business-financing\/types-of-business-funding\/","title":{"rendered":"Types of business funding"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.23″ custom_padding_tablet=”” custom_padding_phone=”0px||||false|false” locked=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f4f4f4″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” pac_dcm_carousel_specific_module_num=”0″ border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Copy paste body text here” _builder_version=”4.27.0″ header_2_font_size=”32px” header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n

Having a financing option is crucial to getting your business idea off the page and into the world. If you\u2019re starting up a small business in New Zealand for the first time, you\u2019re going to need access to some business funding.<\/span><\/p>\n

There are several financing options available to you when you first launch your business, each with their own advantages and drawbacks.<\/span><\/p>\n

Even if you choose one financing option to float your business in the first place, you may need a second injection of capital to grow your business.\u00a0<\/span><\/p>\n

Let\u2019s investigate the financing options on the table so you can make the best choice.<\/span><\/p>\n

What are the 3 types of business funding?<\/strong><\/h2>\n

There are generally considered to be three primary types of business funding. These are known as <\/span>internal funding<\/span><\/i>, <\/span>debt finance<\/span><\/i>, and <\/span>equity finance<\/span><\/i>. Each form of business funding will be appealing to different business owners for different reasons.<\/span><\/p>\n

Internal funding<\/strong><\/h3>\n

Internal funding is a financing option that\u2019s only available to those who\u2019ve worked to save a decent reserve of capital.\u00a0<\/span><\/p>\n

Many people will studiously save for years with a business in mind. You might have originally saved for a house deposit but have instead decided to use it on a business idea. Maybe you\u2019ve been fortunate enough to come into a sizable cash reserve. You may have sold a previous business for profit, or you could have pooled savings with a partner to launch your own business.\u00a0<\/span><\/p>\n

Whatever the case may be, internal funding dictates that you have enough spare and unencumbered cash deposited, to fund the initial setup of your business venture.<\/span><\/p>\n

Advantages<\/i><\/strong><\/h4>\n