Entrepreneurial endeavoring attracts a risky lot. Once the great business idea is developed, it is time to handle the finances.

First, it is best to obtain a clear understanding of the difference between business capital and a business loan. The word "capital" has different meanings in finance, economics, and politics. Business financial capital represents ownership in a business. If it is a sole proprietorship business venture that means 100% capital belongs to the sole business owner. Generally, a business has both capital value and liability exposure. Loans represent the leasing of capital, typically with interest, from another. It must be repaid. Loans come with certain legal obligations and constitutes a business risk or business liability.

Self-Help Financing: Investing Personal Capital in Your Business

The classic source of funding for the budding business venture is the money of the start-up sole trader or partnership. Ask, "What do I own?" Go through everything - money, property, and investments. Make a list. What else will the start-up owner commit financially to the business? What can be liquidated to provide cash? What property won't the owner touch under any circumstances? Can income from the existing employment of the start-up owner be used to fund the venture?

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