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What is often the best source of credit for business start-ups?

User Brajeshwar
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Final answer:

The best sources of credit for business start-ups are commonly the entrepreneur's own resources, like personal savings or credit cards, and financing from angel investors, who seek equity in exchange for their investment.

Step-by-step explanation:

The best source of credit for business start-ups often varies depending on several factors including the amount needed, the stage of business development, and available options. However, for many entrepreneurs, the initial source of funding comes from their own resources. This might include dipping into personal savings, using credit cards, or securing loans by leveraging personal assets such as a home. Another common source of early-stage capital comes from angel investors, who provide financing in exchange for equity ownership in the business. These individuals often invest in start-ups due to their potential for high returns, despite the risks associated with new ventures. For those unable to secure funding through personal means or angel investors, venture capital firms can be an alternative, although they are typically interested in larger and more established start-ups with proven potential.

User Kortina
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