Wed 27 Aug 2008
Financing Tips For Small Businesses
For small businesses, especially start-ups, it is very difficult to qualify for business loans since traditional lenders such as banks require adequate security.
Here are some alternative means of arranging financing for your new small business.
These financiers will provide funding once they are convinced that your business has strong potential.
The downside is that you might have to include them as partners in your business - and this could pose a problem if disputes arise.
These are companies that are run by financial and marketing experts. They will not only offer you money for your business, but will also help you in marketing your business to a larger audience.
They can also help you in increasing your online presence by helping you to start and maintain a marketing campaign over the Internet.
These are normally wealthy entrepreneurs who wish to help fledgling companies stand on their feet.
They provide financing quickly, and their interest rates are also lower compared to venture capitalists.
Family & Friends
You can put your business proposal in front of your family and friends with the hope of arranging this form of informal financing.
However, make sure that you pay off these loans on time, as any delay could have serious social consequences.
Small Business Grants
These grants are currently not given by the government except in some states. However, small business loans are given by the Small Business Administration [SBA] at reasonable interest rates.