When running a business, you constantly need to deal with money, either the inflow or outflow of cash. Therefore this tells the importance of this topic.

Although running a business requires money, a good number of businesses do not have the financial strength to carry out some business activities but then most are not aware of the various channels to get funds for their businesses.

Now, there are two ways to finance your business externally which are debt and equity.

For debt, its all about borrowing money with a guarantee in line. The good side about it is that you still have ownership of the business but the downside about this is that you have to pay back with interests and also within the time allotted for payment or else, your guarantee will be taken up to law.

On the other hand, equity is also one way to generate funds for your business, here you don’t necessarily have to pay back but you have to give up a portion of the ownership of your business. Here you don’t have full control of the business as your investors also have a say in the operations of your business.

In equity, you can also get advice from your investors, connections to other platforms that will help you, exposure and so many more



Just as the name implies, these are organisations that help small business owners by lending funds to them at which at a later time they will pay back.

Below is a list of small business lenders :

  1. Well fargo bank
  2. TD bank
  3. US bank
  4. Lending club
  5. Fundation
  6. Funding circle


This is also a platform where entrepreneurs or business owners can get funds to run their business.

To be able to receive loans from banks you need to show them your track record , you also need to give them a collateral and also show them your business plan.

To create a business plan, check out our previous posts for creating a top notch business plan.

There are many more requirements for receiving loans from a bank as a business owner, you can find them in our newer posts.



This is a form of funding in which highly influential people invest in a business or startup in which in return they gain some ownership in the business.

Below are a list of some angel investors

  1. Ron conway
  2. Dave McClure
  3. David Tisch
  4. Esther Dyson
  5. Pete Flint
  6. Eghosa omoigui
  7. Adegoke Olubusi


This is a form of private equity in which the big-time investors put money most of the time into a startup to help scale it up.

Most of these startups have the potential to grow really big and as a result, the venture capitalist takes a percentage of the ownership of the bank.

Venture capitalists could be individuals, investment banks or any other financial institution .

Below is a list of some venture capital institutions in Nigeria

  1. Cordros capital Ltd.
  2. Kord capital Ltd.
  3. Lighthouse investment Ltd .
  4. Unique venture capital.
  5. Henshaw capital partners Ltd


Aside from the methods of funding listed above, there’s one other unique method of funding one’s business, its called bootstrapping.

Bootstrapping as a form of funding is a situation where you start and run a business with no external help.

You generate all the money needed for the business from the business. Here, there is really no equity to be given out. You own your business and control it yourself.

For more on venture capital, bootstrapping check out newer posts for more details.

Komolafe Timileyin is a passionate entrepreneur that loves to solve entrepreneurial issues. He is also a blogger and an upcoming Engineer.


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