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Where to go to get financing for your businessThere are a number of places where you can get financing for your business, whether you have been in business for a long time or if you are starting up your own business for the first time. Of course you can head for the immediate solution that comes to mind: your local bank.However, there are a number of different types of financing solutions that you can turn to in order to finance your business.There are also a different number of banks that you can look at, along with different types of business loans and financing arrangements.
Here are the most common and the less common resources and options for financing your business: angel investors Here's some information on a few of those financing options. The federal government The federal government's Small Business Administration offers a great resource to help the small business owner plan business budgeting and financing options.You can also look on their website at www.sba.gov for information on government grant financing options.While the government does not provide grants solely for setting up your business or making it larger, it does provide grants to any businesses or organization that works to help small businesses with management, financing, technical assistance, or other business aid.Usually these organizations are non-profit organizations. If you don't qualify for a government grant, the Small Business Administration also functions as a lender and will back up your business loans.The Small Business Administration will either function as the lender itself or it will guarantee your loan through another lender in order to limit the risk for the lender. Personal financing When it comes to your own business, personal financing is a way to finance that many people don't believe that they have the resources to do.However, that is not necessarily true.You can finance your own business either through assets that you already have, a savings account that has been waiting for just this time, or by going into personal debt. Many entrepreneurs find that their friends and their family are willing to help them out with financing a business venture.This might be an avenue for you to pursue. Commercial financing Commercial financing refers to any commercial organization that provides financing for your organization.This can be a traditional lending organization, such as a bank or a credit union.Or it can refer to a commercial lender like GE commercial financing.Here are some tips that can help you know what you need to do when you approach a commercial financer for help with your small business financing: No matter which approach you decide to take to financing your business, you need to start with an actual financial plan.The SBA offers templates and directions on their website to help you come up with an idea of what your finances are and what they need to be. You will need to collect the following information to adequately understand where you are, where you want to be, and what you need to get there. |
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