How to Finance a Small Business?

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

1. Decide how much money you need to start or expand your business.
2. Write a business loan proposal that outlines your company’s financial history and projected profits.
3. Get a credit report.
4. Apply for a bank loan if yours is an existing business. Banks typically do not lend to start-ups.
5. Apply for a Small Business Administration secured loan. Start-ups may need significant assets and capital to qualify for one.
6. 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.
7. Consider a personal loan if you require only a small amount of money or have poor credit.
8. Apply for a line of credit at your bank if yours is an existing business in need of a flexible source of capital.