Most Common Sources of Funding For Small Businesses

By JJ Thomas • Nov 28th, 2007 • Category: Starting a Business

Courtesy of PowerHomeBiz & National Small Business Association:

  • Credit cards - 44%
  • Earnings of the business - 43%
  • Bank loan - 29%
  • Private loan (friends or family) - 22%
  • Vendor credit - 18%
  • Leasing - 7%
  • Small Business Administration loan - 6%
  • Private placement of debt - 4%
  • Selling/pledging of accounts receivables - 3%
  • Private placement of stock - 1%
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JJ Thomas is the founder and chief promoter and contributor for BirminghamSmallBusiness.com. JJ has a passion for entrepreneurship and enjoys helping fellow aspiring and practicing entrepreneurs. JJ has also founded other related business ventures, such as Entrevisor (providing entrepreneur advisory services) LOLO Rewards (coalition loyalty and rewards program for locally owned, independent businesses), The Entrecyclopedia (the Entrepreneur's Encyclopedia of useful information) and EntrePulse (a weekly roundup of practical info for aspiring and entrepreneurs).
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