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Other Sources of Capital

Credit Companies

One of the main sources of capital for entrepreneurs in the United States is in fact the credit card issuers. An examination of the sources of financing available to small and mid-sized companies in the United States reveals that individual and corporate credit cards finance about 50% of U.S. companies which require outside financing. This financing is provided primarily by credit card issuers, which specialize in small businesses. However, these loans are relatively small, short-term, and carry a high interest rate.

Leasing

An allotment of equity in consideration for cash is a rather expensive method of financing a promising venture. Therefore, entrepreneurs do their utmost to finance their startups by other sources.


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