 TITLE: What Is the Difference Between a Grant and a Business Loan? CONTENT: Alternative Sources of Business Funding\n---------------------------------------\nIn addition to loans and grants, consider these ways to finance your business.\n*   **Credit cards**: A business credit card can provide the purchasing power to accomplish your goals. For example, suppose your toy store needs inventory to prepare for a rush of holiday sales. You can use a credit card to buy the inventory, sell the goods and use the profits to pay the credit card bill. Business credit card issuers evaluate your personal credit, so make sure your credit score is in good shape before you apply.\n*   **Family and friends**: Why not see if the people who believe in you most can help your business grow? Family and friends may be able to lend you money or invest money in return for part ownership in your business. Always treat these transactions professionally; draw up paperwork that goes over the loan or investment details, and pay back any money you borrow.\n*   **Angel investors**: Angels are wealthy individuals who invest in promising companies, either individually or as part of a group. Often, angels offer business expertise as well as cash. You can find angels through referrals from other business owners or professionals.\n*   **Equipment financing**: Like an auto loan uses the vehicle you buy as collateral, an equipment loan uses business equipment to secure the loan. Online lenders and equipment financing companies offer equipment loans; many equipment manufacturers or resellers do too.\n*   **Peer-to-peer lending**: Peer-to-peer lending websites connect individuals seeking money with other individuals willing to lend it. This can be a good option if you don't need a lot of money.\n*   **Crowdfunding**: Sites such as GoFundMe and Kickstarter allow companies to solicit donations from individuals—usually to fund a product launch. You'll need to offer something in return for crowdfunding contributions and work hard to promote your campaign. END