Business financing is the means by which companies obtain funds to operate and expand. Small businesses typically require outside capital to finance growth, or to purchase inventory or new equipment. Financing comes in many forms, such as bank loans, lines of credit, venture capital, and invoice factoring. Each type of financing has its own unique benefits and risks, so business owners must carefully evaluate their choices before committing. Knowing the particulars of available options can help entrepreneurs make smart, informed decisions that will ensure the long-term success of their ventures.