There are several other financing options available to buyers:
- Equity Financing – money invested into the business in exchange for a share in its ownership.
- Debt Financing – usually in the form of a loan where the principal amount borrowed and interest accumulated on the loan needs to be paid.
There are a number of sources of equity finance available to business:
- Personal Savings
- Friends and Relatives
- Angel Investors: wealthy individuals who lend their personal finances to a business in return for a share in its ownership.
- Venture Capital: applications to professionally managed third parties such as a superannuation fund who lend finance based on a good business plan.