Leaders must be familiar with various funding options to choose the most suitable one for their business. Common types include:
1. Equity Financing: Involves selling a portion of the company's ownership in exchange for capital. This is often pursued through venture capital or angel investors. 2. Debt Financing: Entails borrowing funds that must be repaid with interest. Sources include bank loans, bonds, and credit lines. 3. Grants: Non-repayable funds provided by governments, non-profits, or other organizations, often for specific projects or research. 4. Crowdfunding: Raising small amounts of money from a large number of people, typically via online platforms.