Loan (Photo credit: Philip Taylor PT)

There are several categories of loans small business owners can pursue while trying to fund their start-up company. Before choosing which type of loan to capitalize on, you should know the advantages and disadvantages of the two most common categories of business loans.

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There are many people these days who would like to consider starting their own business. Whilst some people may think that now is the worst time to consider starting a business due to the economic fragility and turbulent financial climate, others believe that now is the perfect time to consider this due to the uncertainty over employment, job losses and pay cuts.

However, no matter how keen and eager you are to start your own business, one of the things that is likely to pose a challenge for many people is finding the money to start up your own business. Of course, the amount of money that you need to start your own business will vary depending on the type of business that you plan to start, what you already have versus what you need, and what is involved in setting up e.g. renting premises or buying equipment.

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This is a question that is weighing on most business owner's minds these days, especially since the banking crisis and the bailout debacle of late. Many of the big banks, that we were so certain were too large to have anything to worry about, failed. The small banks were almost expected to fail.  But that only makes one wonder if the business account is safe anywhere. The truth is it isn't.