There are several ways to fuel your
growing business. The more traditional sources of small business
financing include:
- Friends and family
- Banks (who specialize in small business
financing)
- Small Business Administratrion (SBA)
- Angel investors
- Venture capitalists
However, if you ask a majority of small
business owners, they will probably each have a story or two to share
about the difficulties of securing the above listed financing
options. The most common funding sources that small business owners
will use are their own resources (401k, personal savings, sell a
vacation home or other investment property, take a
margin loan against your stock holdings
or a
home-equity loan).
NOTE: Be sure to
seek the appropriate professional financial and tax advice to
determine the potential impact of using these sources of funds.
How much capital does your
business need?
When you add your personal assets minus
your current liabilities, decide which side of the equation you are
willing to put at risk. Figure out how far your personal assets might
take your business, then estimate the total cash flow needed to fund
your small business. The difference tells you how much capital you
need to raise for your business.
Whether your preference is grow as your
business grows by accepting credit cards, use your personal savings
or to use equity loans or lines of credit, we
have selected to best in the industry to meet your needs.
