Most people immediately think of commercial banks when they determine a need for business financing. Unfortunately, as a source of start-up funding, banks end up far down on the list of likely sources. Instead, most small businesses are financed through private funding and other sources. Some of these sources include:

• Personal savings
• Loan from family or friends
• Personal bank loan
• Refinancing or a second mortgage on real estate or other assets
  
  

  (Note: Sources 3 & 4 are generally contingent upon your having a regular source of income, i.e., a job; thus, if you plan to travel this route, you need to secure this financing while you're still employed.)

• Cash value of assets you could sell
• Cash value of life insurance, stocks or bonds
• Credit cards
• Investments from partners
• Advance payments from contracts (not a likely source)
• Credit from suppliers