If you have identify the cash available from your own pocket but you found that is not enough to start your home based business venture, here are some funding sources that you can consider and look into.

Banks

Bank can be said is the primary funding source for any home based business, small business or even an established business. To apply for any loan from bank, you should prepare a proposal or in other word, a business plan, the bank would want to see your financial statement, cash flow projection, business background, asset for the business and so on. The bank like the ultimate protection of hard asset, they also want to feel that there is little chance that the business will have to call upon these assets to pay off the loan in any case.

Bank also reluctant to loan to a business that couldn’t show at least a 2 years profitable operation, they would want to see also the business owner is heavily invested in the business before they approve the loan. The bank will not also release any loan that the loan amount is more than 50% of the business capitalization.

Personal loan

Personal loan can be a great funding source for your home based business, and one of the most common means of obtaining funds from this type of source is through a home equity loan. If you have an assets (NOT YOUR LIVING HOME!) that you have pay the mortgage for several years, you can consider to refinance the asset. You can then use the fund from your home equity loan to operate your business.

SBA loan

Small Business Administration(SBA) is also one of the great funding source for small business and home based business. SBA do not usually make loan directly to small business but they will guarantee up to 90% of of bank loan to the business. I would say the term and condition provided by the SBA from any country is different, you should contact your local SBA firm for more detail information.

Look for investor

Look for any investors that might have interest on your field of home based business, prepare a business plan for your business featuring every single aspect in running the business, particularly on the financial part and make an achievable commitment to them on the return percentage they can make from their investment.