Banks are one of most common sources of debt financing. There are many other sources for debt financing including: savings, loans and commercial finance companies. It is also possible to ask for funding from family members, friends or colleagues, especially when capital requirement is small.

Traditionally, banks have been major source of small business funding. Their principal role has been as a short-term lender offering demand loans, seasonal lines of credit, and single-purpose loans for machinery and equipment. Banks generally have been reluctant to offer long-term loans to small firms.

In addition to equity considerations, lenders commonly require borrower's personal guarantees in case of default. This ensures that borrower has a sufficient personal interest at stake to give paramount attention to business. For most borrowers this is a necessary evil.

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While opportunities for military loans sound wonderful, please act with caution. Lenders exist in a competitive market, and some, while pretending to sympathize with U.S. servicemen, may in actuality be taking advantage of them by charging higher rates and offering less favorable terms under guise of a military loan.

Sometimes conventional lenders will offer best terms and rates in today's competitive marketplace. Military personnel and retirees should do their research to find best deal before signing any loan agreement.

Regardless of what loan a person chooses, money should be used wisely and not squandered. Enter into search for a loan with a specific purpose and intent for which to spend money. This will help avoid any problems of debt later down line. By following words of Lord in Proverbs 21:20, "There is a treasure to be desired and oil in dwelling of wise; but a foolish man spendeth it up," you can evade plight of foolish man.

For more information on military loans visit ChristiaNet's website at: http://www.christianet.com/loans/militaryloans.htm