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ABA Family Legal Guide

Forming and Operating a Small Business

Starting a Business

Financing a Business

How do I go about financing my business?

There are usually several potential sources of capital for a new business:

  • Contributions made by you
  • Loans from family and friends
  • Loans from banks and other financial institutions
  • Loans underwritten by a government agency
  • Investments made by others who will be actively involved in the management of the business
  • Investments from other individuals and institutions who won't be actively involved in the business and are looking just at the profit potential

    How the funds are raised and where they come from have many significant legal considerations.

    • American Bar Association Family Legal Guide
    Copyright © 2004 American Bar Association
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