the small business resource center
The financing of a small business is the greatest obstacle for an entrepreneur when starting a new business. Developing a sound strategy for obtaining the proper type and amount of financing is crucial for the long-term success of any business opportunity. Raising capital is the most basic of all business activities. In the early stages of starting your business, you may need to obtain financing for the basics necessary just to open the doors.
Purchase a Business
You may need to acquire the capital to purchase a new building or an existing business.
Start-up and New Growth Financing
These costs can include professional fees, inventory, equipment, deposits, marketing materials, and working capital.
Part of operating a new business is the purchase of equipment -- whether it is kitchen appliances for a restaurant or mowing equipment for a lawn service. Many commercial banks provide loans for this type of financing.
There are several sources to consider when looking for financing. It is important to explore all of your options before making a decision. Your savings and your family’s savings are viable sources of funds and show future creditors that you are willing to personally stand behind your business. This type of faith is what banks and other creditors like to see before lending money to a small business operation. An advantage to financing a business through personal or family savings is that it is less costly than bank financing. Reducing risk and expenses early in the life of a business are two factors that will help ensure long-term success.
Click on the links below for information on various financing opportunities: