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Entrepreneurship: Funding your business (III) By Mon Jul 26 2021 In the last two weeks, we covered the uses to which funds are put in a business and the major types of finances for a business. Today we shall take up sources of funds for your business, which, for our purposes here, can simply be classified into two, viz; Informal and Formal. Informal sources: These are sources of funds at which not much rigorous review of your business proposition or financing request is conducted. Usually, such sources tend to just be compassionate and even indulgent about the support they are providing to the entrepreneur as a person. Informal sources provide the entrepreneur with loans at concessionary or no interest at all as well as outright equity investment without much expectations, demands, conditions or even a legal intent. Other than the entrepreneur themselves, other informal sources of loans and investments are friends, family, professional colleagues, crowdfunding, etc ....
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