For many startups, securing investment via equity funding is a matter of finding those willing to invest money in startups in exchange for equity in the company. opportunity for growth, often also provide guidance to young companies–like mentorship and access to sales networks; but will likely require more reporting and oversight. When starting a new business, a VC firm can give you the guidance you need to get off the ground. Carrying this out requires financial projections: future capital requirements, revenue and profit, and an ROI timeline must be spelled out.

Fintech lenders can be a great funding option for small business owners. They provide short-term, high-interest business loans for entrepreneurs looking to quickly grow and expand with capital. The biggest draw of these lenders, however, is their flexibility. Alternative lenders rarely require equity like an angel investor or VC firm. Instead, they provide loan agreements that mirror conventional banks but usually have much more relaxed requirements to qualify. Less relinquishing of control, yet higher interest rates.

Fintech for short-term loan packages requires flexibility, which makes alternative lenders the most viable option for some businesses. The downsides to alternative lenders are the high interest rates and potentially demanding loan agreements. best for businesses that have access to the capital to cover these short-term loans. Alternative lenders have the most demanding loan terms and agreements compared to VCs, angel investors, conventional banks.