Most start-up businesses are going to require some finance to get off the ground. Government grants are worth exploring as a grant provides money that does not need to be paid back if the business is eligible and approved. The business owner may have personal money to put towards the business yet may need additional funding to get off the ground.
Extra funds can be obtained through traditional debt finance which is taking out a loan from a bank or other lender. This can be challenging to secure if the business is unproven. Alternatively, equity finance is sourcing money from within your business by selling shares. Similarly, it can be high risk for investors to gain their money back as the business is unproven to be financially viable.
It’s important to get advice from an accountant with industry and small business experience before making any decisions. An accountant’s advice will assist in deciding between a loan or equity as well as the tax obligations for each.