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The road to starting a successful business can be a long one, filled with many hurdles and obstacles along the way. Even if you have a great business idea, no business can succeed without a financing plan. While the process may sound daunting, there are many small business financing options, each with their own advantages and disadvantages. Here’s a brief summary of start-up business financing options for anyone thinking of starting their own business in 2012.
Instructions
- Decide how much money you need to start or expand your business.
- Write a business loan proposal that outlines your company’s financial history and projected profits.
- Get a credit report.
- Apply for a bank loan if yours is an existing business. Banks typically do not lend to start-ups.
- Apply for a Small Business Administration secured loan. Start-ups may need significant assets and capital to qualify for one.
- Opt for one of the Small Business Administration’s loan programs designed to provide start-up capital or, if you fall just short of qualifying for a bank loan, to purchase commercial real estate.
- Consider a personal loan if you require only a small amount of money or have poor credit.
- Apply for a line of credit at your bank if yours is an existing business in need of a flexible source of capital.
