Financing Sources - How can a company decide which kind of source to use for financing?

Every company has a unique capital structure and network of relationships that will determine the kind of financing that would be most advantageous for it and the sources that would be the most likely to provide funding. Start by deciding the appropriate kind of financing based on the company’s current financial condition, and then begin approaching sources.

The important thing is to avoid preconceived notions about what these sources can and cannot do. For example, don’t think that because you are a small private firm, you cannot sell equity in your business.