There are many ways to finance a business, but the most common ones are: 

1. Self-Funding
   
   

   If you think you can manage the projected expenses yourself, you might be able to manage the fund yourself. 

   You can take money from your savings account or use your credit cards or ask for donations from family and friends.

   The best part is you can have full ownership of your venture but risk long-term debt or losing your savings or money from those who care about you.



2. Crowdfunding
   
   There are many crowdfunding platforms like Indiegogo, Patreon, and Kickstarter that let entrepreneurs pitch their products or services for financial support. 

   If you think people will love your products, they could donate to you in exchange for discount codes, free items, or acknowledgment.



3. Small Business Loan
   
   

   This is another way to secure startup funds. You’ve to do your homework first before you apply, which includes preparing an effective value proposition, business plan, income and expense report, and financial plan for the next few years. 

   Check to see you understand the different terms and conditions of the lender before you take out a small business loan.



4. Venture Capital from Investors
   
   

   Startups and early-stage companies with a high growth potential can opt for this type of business finance. It’s usually offered by wealthy individuals, investment banks, or specialized VC firms in exchange for equity.

   
   

   It’s highly risky for investors since most startups fail, but successful ventures are known to deliver substantial returns. Funding is usually provided in stages (e.g., Seed, Series A, B, etc.) as your company achieves key milestones.

Here’s a quick overview of the most common types: 

• Term Loans – Ideal for big investments, repaid over a fixed period.
• SBA Loans – Government-backed with low interest rates.
• Business Lines of Credit – Flexible funds for ongoing needs.
• Equipment Financing – For purchasing machinery or tools.
• Invoice Financing – Advances on unpaid invoices.
• Microloans – Small, short-term loans for startups.
• Merchant Cash Advances – Fast cash, repaid through future sales.

The eligibility criteria vary from one business funding advisory services provider to another and the type of business loan you’re opting for. 

Here are the most common factors:

1. Business Age

   Lenders want to know how long your business has been operating. Many require at least six months to two years of operational history.

2. Financial Performance

   You’ll have to provide evidence of your revenue, including profit and loss statements. Strong financial health can boost your chances of approval.

3. Credit History

   Both your business credit score and your personal credit score will be considered. A good credit history shows that you’re a reliable borrower.

4. Business Plan

   A detailed business plan might be required to outline how you’ll use the loan and repay it. This includes projections for growth and profitability.

5. Collateral for Secured Loans

   If you’re applying for a secured loan, you’ll need to provide collateral like property, equipment, or inventory as a safety net for the lender in case of default.

On average, the interest rates for business loans vary from 6% to 13% at banks and SBAs. If you go for online loans, you may have to survive higher interest rates.

This also varies based on many factors, such as the lender, the type of funding you need, your qualifications, and your business performance and growth potential. 

To give you some idea, SBA loans take from 30 to 90 days to get approved. For short-term, working capital loans, some banks take around a week while online lenders approve applications on the next day.