1. Equity Financing - The most basic form of funding is called "equity financing," and it really is the most risky for a business owner. It simply means that the funding comes from the business owners contributing capital to buy "shares" of the company. In return for the shares of the company the contributor gains a percentage of the profit. 2. Loan Finance - Loan financing is when you borrow money from a finance company, often times this is a bank. In this situation you pay the loan off over a specified amount of time plus interest, which is how the bank/company makes money. 3. Grants - A grant can be one of the best ways to acquire funding, however it also is one of the most difficult. A grant is awarded to businesses by a party looking to simply advanced a field, location, or industry. Grants do not have to be repaid, and there is no interest. You simply have to abide by the terms and conditions.