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There are several sources of capital for small businesses. For the start-up, the entrepreneur oftentimes will use their own capital, credit cards, line of credit and funds from friends and family members. Also, some angel investors may have interest in investing capital in the start-up, aka, 'pre-revenue' business.

If the business has operations and is revenue producing, credit unions and banks are possible sources in addition to those mentioned for the for the start-up.

In all cases of outside capital, the entrepreneur should have a comprehensive business plan and disclosure documents available to offer the potential investor. The disclosure documents are not the business plan because the information in the disclosure documents relates to risks associated with the business whereas the business plan provides a 'road map' for the business to achieve it's, i.e., 5 year goals.

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Q: Sources of capital for small business?
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