The ability to access capital is important for many growing small businesses, whether one is looking to invest in infrastructure, increase inventory, or simply keep operations running.

There are two primary options to enable a business to receive funding: taking out loans or bringing in investors. While both have their strengths, loans tend to be more popular because they often require less outside input on how to run your business, have tax-deductible interest payments with lower rates, and terms that can be set based on expected receivables.