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Business Financing Resources

Considering your business financing options is a valuable excercise that if done thoroughly will likely lead you down the right path as to what will best serve your needs.

One key to a successful business start-up or expansion is your ability to obtain and secure appropriate financing. Raising capital is the most basic of all business activities. But, as many new entrepreneurs quickly discover, raising capital may not be easy; in fact, it can be a complex and frustrating process. However, if you are informed and have planned effectively, raising money for your business will not be a painful experience.

There are several sources to consider when looking for financing. It is important to explore all of these options before making a decision.

• Personal Savings: The primary source of capital for most new businesses comes from savings and other forms of personal resources. While credit cards are often used to finance business needs, there may be better options available, even for very small loans.
• Friends and Relatives: Many entrepreneurs look to private sources such as friends and family when starting out in a business venture. Often, money is loaned interest-free, or at a low interest rate, which can be beneficial when getting started.
• Banks and Credit Unions: The most common sources of funding, banks and credit unions, will provide a loan if you can show that your business proposal is sound.
• Venture Capital Firms: These firms help expanding companies grow in exchange for equity or partial ownership.

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