Let’s look at the different ways we have to fund the creation of a new business, ie, the different ways we have to find money to invest in the creation or implementation of a business:
The most common way to finance the creation of a new business is using its own capital, ie, using the money we may have, either getting it from our savings, or any other personal source, for example, using the credit cards, selling personal assets, etc..
This type of financing is the most recommended as we are not required to pay interest or to have to pay back.
It is always advisable to start a business, using its own capital, at least at the stage of creation, and ya later, when the business begins to grow, just start looking for external sources of funding.
If however, when our equity is not enough, you can combine it with other types of financing discussed below.