A mortgage is the signing over of property or a house to a person who is named the lender, this is accomplished to secure it for a mortgage loan. By definition, you might be in search of it before you could have a working Business Plan, so will probably be seen as very high threat funding by any potential investor. Start-up, or working capital, is the funding that can allow you to pay for tools, hire, supplies, and so forth., for the first 12 months or so of operation.\n\nBenefits: The benefits of traditional financing are low-interest rates (typically), low loan costs (or points), and long loan durations (typically no less than 30 years). So, except you could have good credit, earnings, and small debt, you’re better off not even bothering with attempting to get traditional financing today.\n\nEquity Investment is just a fancy title for “associate.” An equity investor will lend you money in return for some mounted share of the investment and profit. Generally the equity investor might be involved in the actual deal, and oftentimes the break up isn’t 50/50, but the gist of the equity investment is similar – a associate injects money to get a portion of the earnings.\n\nFor industrial banks, the market threat of the steady liquidity investment portfolio arises from mismatches between the chance profile of the property and their funding. This threat entails interest rate threat in all of its parts: equity threat, change threat and commodity threat.