Starting a Business: Financing

At some point early on in your business’ lifecycle, you’ll probably need cash exceeding what your business is able to generate.

Financing will likely come from you or a few close friends and family. With the growth of your business, you may notice that your financing options have broadened—outside investors may recognize your business as an investment opportunity, or you may be able to borrow money for the business on its own credit.

The two most common ways corporations raise capital are issuing equity, such as shares, and incurring debt, such as borrowing money through a bank loan or loans made to the business by shareholders. Debt investors look for lower, safer returns and regular interest payments, while equity investors are generally willing to accept more risk and the possibility of waiting for a long time before their investment pays out for higher returns. Usually, founders make most of their initial capital contributions as shareholder loans with a comparatively minor amount invested as equity.

It’s recommended that you consult your professional advisors regarding any financial transactions to ensure you’re raising money efficiently and legally. As a new business owner, you’ll want to be aware of the financing options available to you and know the risks associated with each.

Get the Guide

To learn more about important considerations and information on starting a business in BC, download our in-depth guide.

More topics for start-ups to consider

The Necessary First Steps

There are many necessary initial steps to take in order to successfully start or continue operations.

learn more

Business Structure

One of the very first steps of starting and running a business is choosing a legal structure for your business.

learn more

Shareholders’ Agreements

Shareholders should enter into a shareholders’ agreement in the early stages of starting a business.

learn more


Starting a new business comes with many challenges, such as finding a space to operate.

learn more


About Fraser

Fraser Hartley has worked with clients on a range of transactional matters, with a focus on corporate financings, mergers and acquisitions and financial restructurings. In addition, he provides advice on corporate governance and securities compliance issues and general corporate and commercial matters.

Fraser has acted for domestic, U.S. and international public and private companies and has significant experience acting for financial institutions in public and private capital markets transactions, secured lending and acquisition financings.

Prior to joining EKB, Fraser worked at an international law firm based in New York, practising U.S. law and also as legal counsel at a major U.S. investment bank supporting capital markets transactions.