Tag: Financing

Three Popular Start-Up Financing Options, The U, financing a new business.#Financing #a #new #business


Three Popular Start-Up Financing Options

Thinking about starting a business? Recent studies and reports have shown that entrepreneurs are more optimistic than in recent years when it comes to the state of their businesses this year, and that’s great news! But always high on the list of concerns for starting a business – even in optimistic times – is financing. Here’s a roundup of some ways, aside from avenues such as SBA-backed loans, to finance your business.

According to expert Marco Carbajo, credit cards are a major source of financing for small business owners, with statistics even showing that more than 65% of small businesses using them on a frequent basis. It’s a popular approach, but you should be sure to do your research to determine if it’s the right one for you. Here are some tips from Entrepreneur.com to help:

  • Unless your business is incorporated – so if yours is a sole proprietorship, for instance – you are guarantor of all debts. So if your sales are slow and you fall behind on payments, you risk your personal credit rating and ability to borrow.
  • It varies by state, but your credit-card issuer might still require that shareholders with significant ownership guarantee the line of credit – even if your business is incorporated.
  • Potentially bringing on partners? Make sure your agreement states that they’ll accept personal guarantees on all existing business debt. You need to address this specifically because in many states, new partners aren’t automatically responsible for previous debts.
  • Read the fine print. Don’t accept an offer without checking into the details, understanding the terms of use and evaluating risks. Don’t hesitate to ask a professional for guidance.

Asking friends and family to borrow funds to help finance your business sounds like it could get awkward, but it doesn’t have to. Treat the process just as professionally as you would an engagement with a bank. If you done right, you can potentially gain quicker access to the cash you need and jump through fewer hoops – after all, your friends or family already know you. Read more about borrowing from friends and family in our article here, but think about these highlights as you consider this option:

  • Think carefully about who you’ll approach and make sure they understand the risks (and rewards) of getting involved. Keep in mind if your business doesn’t work out and you can’t repay your obligations, relationships could suffer.
  • Be realistic about how much money you need. Instead of asking for the maximum, consider what you need to get you to a certain point in your business plan. Once you show you can repay that initial investment, you’ll be in a better position to ask for more money if you need it.
  • Write it down. You might think a verbal agreement with your friend or relative is sufficient given the personal relationship, but this is business. Consider this advice from Entrepreneur.com: “Any time you take money into a business, the law is very explicit: You must have all agreements written down and documented. If you don’t, emotional and legal difficulties could result that end up in court. And if the loan isn’t documented, you may find yourself with no legal recourse.”
  • Communicate. Show your business progress and share updates along the way, even if it’s correcting mistakes you’ve made with your business strategy. Checking in and sharing information shows that you’re taking seriously the role others are playing in your venture and demonstrates professionalism.

Increasingly, crowdfunding is becoming a popular way for people to get startup financing for their businesses. You’ve probably heard of Kickstarter campaigns – that’s crowdfunding. It works through a collective cooperation of people who network and pool their money and resources together, usually online, to support efforts initiated by others. So it gathers multiple, smaller investments as opposed to a single source of funding. You can read more about the details here, but here are three other key considerations from Entrepreneur.com:

  • You should begin working on your crowdfunding campaign six months before you want to launch your project. When your campaign starts, you should’ve already made a significant effort in letting people know about it collecting email addresses so you can really hit the ground running when you open the gates for your campaign.
  • Set your funding goal as low as you can manage because some crowdfunding platforms, like Kickstarter, are “all or nothing.” For instance, if you set a goal of $1,000 and you meet it, then you get the money. If you raise only $500, you won’t get anything. Read the fine print about the platform you choose so you can be strategic about your funding request.
  • Don’t forget to award your donors. You’re asking people to take a risk on your business venture – there are no guarantees. So thank them and show your appreciation by offering your product or service at a discount when the time comes.

You can also learn more from our online Learning Center course, “Introduction to Crowdfunding for Entrepreneurs.”

Beyond a “traditional” track of securing a loan from a bank, there are quite a few avenues to consider for financing your business. And with passion, professionalism and planning, you’ll establish a good foundation for success down any of these paths.

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Financing a new business


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Small Business Financing in Canada, financing a new business.#Financing #a #new #business


Starting a Business: Finding Small Business Financing

Financing a new business

Financing a new business

While many new small businesses are financed out of their owners pockets, many others need an infusion of funds from other sources to get off the ground. This page presents the main small business financing options for financing a new business in Canada.

The Most Common Sources of Small Business Financing

You ve already guessed; most new small businesses are self-funded. The next most common sources of startup business financing are family and friends.

Read more about these and other options for financing a new business in 8 Sources of Business Start Up Money.

Learning the Small Business Financing Lingo: Debt vs. Equity Financing

The money you put into financing your new business is an example of equity financing. Stockholders are another example of this kind of financing.

Debt financing, on the other hand, is basically money that you borrow.

Finding Small Business Financing explains more about the difference between the two and the different types of debt and equity financing available.

If you are seeking debt financing, you ll likely find that you will be expected to provide equity financing as well. How much equity financing you can provide in relationship to how much money you’re trying to borrow is the basis of the debt-to-equity ratio (also known as leverage), an important consideration for any potential lender.

Small Business Grants

Small business grants are not a viable option for start up business financing for most small businesses in Canada.

The Truth About Small Business Grants in Canada explains why – and presents specific information on some of the small business grants available to small businesses.

If you are thinking about using grants as small business financing, you should read 5 Tips for Finding Small Business Grants in Canada to make your search easier.

Then browse through the Small Business Grants section of this Web site to get started; it lists more specific small business grants that eligible businesses might apply for.

Small Business Loans in Canada

Most small businesses that aren t self-financed or financed by family and/or friends are financed through small business loans.

Small business loans can be a particularly attractive small business financing option for financing a new business because the federal government sponsors programs that make funding start-up businesses a priority. You ll find details on (and links to) programs such as the Canada Small Business Loans Financing Program, the Business Development Bank of Canada s Start-up Financing and the Canadian Youth Business Foundation Loans Program in this site s Small Business Loans section.

If you are a woman starting a business (and more women are starting their own businesses all the time), you’ll definitely want to read Small Business Loans for Women in Canada, which presents small business loan programs that only Canadian women are eligible for.

When you think about getting a small business loan, the names of traditional banks and credit unions probably pop into your head.

But they re not the only lenders out there. What About a Private Lender? presents another source of small business financing that you may want to look into.

No matter what lender you’re dealing with, though, there are things that you can do to make your loan proposal more attractive. Read How to Get a Small Business Loan to learn how to increase your chances of getting the start up business financing you re looking for.

Angel Investors

Angel investors are another source of small business financing that is worth investigating for many small businesses. Does your new small business have the potential for a solid return? Then angel investors might be interested in providing start up business financing.

Find out more about what angel investors look for when choosing businesses to fund in Attracting Angel Investors.

Then read How to Find an Angel Investor for tips on finding angel investors for your business.

For more information on financing your business, browse the Small Business Financing section of this Web site.


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Sba Financing – Get Cash Now For Free, sba financing.#Sba #financing


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Startup Financing – Small Business Funding, financing a business.#Financing #a #business


Startup Business Financing

Financing a business

Financing a business

Wouldn t you love to have a few million dollars to start your business? Me too! With a great idea and a great business plan, you probably feel almost entitled to get the funding you re seeking.

The reality, though, is that for most entrepreneurs, you must prove your concept first before anyone will put up that kind of money. But most businesses require some sort of initial capital for things like inventory, marketing, physical facilities, incorporation expenses, etc.

According to the U.S. Small Business Administration (SBA), While poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second. Sometimes it comes down to simple cash flow–many companies have closed their doors because they just couldn t make it another few months until the money came in.

When exploring your funding options, there are several factors to consider:

  • Are your needs short-term or long-term? How quickly will you be able to pay back the loan or provide a return on their investment?
  • Is the money for operating expenses or for capital expenditures that will become assets, such as equipment or real estate?
  • Do you need all the money now or in smaller pieces over several months?
  • Are you willing to assume all the risk if your company doesn t succeed, or do you want someone to share the risk?

The answers to these questions will help you prioritize the many funding options available.

  • Debt financing – You borrow the money and agree to pay it back in a particular time frame at a set interest rate. You owe the money whether your venture succeeds or not. Bank loans are what most people typically think of as debt financing, but we will explore many other options below.

  • Equity financing – You sell partial ownership of your company in exchange for cash. The investors assume all (or most) of the risk–if the company fails, they lose their money. But if it succeeds, they typically make a much greater return on their investment than interest rates. In other words, equity financing is far more expensive if your company is successful, but far less expensive if it isn t.

Because investors take on a much higher risk than lenders, they are typically far more involved in your company. This can be a mixed blessing. They will likely offer advice and connections to help grow your business. But if their plan is to exit your company in 2-3 years with a substantial return on their investment, and your motivation is the long-term sustainable growth of the company, you may find yourself at odds with them as the company grows. Be careful not to give up too much control of your company.

Let s take a closer look at the many options available for startups.

Friends and family are still your best source for both loans and equity deals. They are typically less stringent regarding your credit and their expected return on investment. One caveat: structure the deal with the same legal rigor you would with anyone else or it may create problems down the road when you look for additional financing.

Prepare a business plan and formal documents–you ll both feel better, and it s good practice for later.

Credit cards are a great tool for cash flow management, assuming you use them just for that and not for long-term financing. Keep one or two cards with no balance on it and pay it off every month to give yourself a 30 to 60-day float with no interest. And the low introductory rates on some cards make them some of the cheapest money around. Managed well, they re extremely effective; managed poorly, they re extremely expensive.

Bank loans come in all shapes and sizes, from microloans of a few hundred dollars, typically offered by local community banks, to six-figure loans by major national banks. These are much easier to obtain when backed by assets (home equity or an IRA) or third-party guarantors (e.g., government-sponsored SBA loans or a cosigner).

If you obtain a line of credit rather than a fixed-amount loan, you don t start paying interest until you actually spend the money.

Leasing is the way to go if you need big-ticket items such as equipment, vehicles, or even computers. Your supplier will help you explore this.

Angel investors fill the gap between friends and family and venture capitalists, who now rarely even look at investments below $1 million. Enlist a savvy financial adviser to structure the deal.

Private lending represents a viable alternative when the bank says no . Private lenders are looking for the same information and will conduct similar due diligence as the banks, but they typically specialize in an industry and are more willing to take on higher-risk loans if they see the potential.

There are many channels available to you to raise capital. All of the above approaches have numerous variations. Put together a solid business plan, talk to a financial adviser, and just start asking. Someone will eventually say Yes .


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Starting a business – solutions for your new business, Westpac, new business financing.#New #business

Starting a business

Becoming your own boss is the chance to create a new working future. It’s the opportunity to take control of your working life, do something you feel passionate about and build new financial possibilities.

It’s also about challenge, determination, hard work and persistence. If you’re thinking about, or are already in the process of launching a business, then you might need some support and information to help you reach your business goals.

New business financing

What do I need to start?

The first steps are the biggest and you need to lay the foundation for success and understand the importance of choosing the right business structure, registering for an ABN, writing a business plan, setting up a website and putting your accounting in place.

New business financing

Funding for my business

It pays to be across the costs of setting up your business from the start. You’ll need to know what sorts of up-front costs you’ll face, especially if they involve new vehicles, machinery or equipment. There are also different financial solutions to consider.

New business financing

Managing the money

Cash is the lifeblood of business and it needs to flow effortlessly and efficiently in and out of your business. It also has to be easy for customers and suppliers to work with you and for you to take the financial pulse at any time.

Discover business product offers.

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To be eligible to apply for Business One – Low Plan, your business must be registered in Australia.

General advice: This information is general only and does not constitute any recommendation or advice. It is current at the time of publication, and is subject to change. It has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on the information, consider its appropriateness, having regard to these matters. Consider obtaining personalised advice from a professional financial adviser and your accountant before making any financial decisions in relation to the matters discussed in this document, including when considering the finance options for your business.

Conditions, fees and charges apply. These may change or we may introduce new ones in the future. Full details are available on request. Lending criteria apply to approval of credit products. This information does not take your personal objectives, circumstances or needs into account. Consider its appropriateness to these factors before acting on it. Read the disclosure documents for your selected product or service, including the Terms and Conditions or Product Disclosure Statement, before deciding. Unless otherwise specified, the products and services described on this website are available only in Australia from Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.


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Business Financing, financing for business.#Financing #for #business


Financing for businessCEI

  • Home
  • Financing
  • Business Financing

CEI and its subsidiaries offer business and project financing and technical support for a wide range of small business, community facilities, renewable energy, affordable housing and mixed used real estate projects and ventures. With flexible business financing, loans, investments, rates and terms, CEI is able to leverage its capital with banks and other sources.

Since its first major investment in 1979 in a value-added, community-owned fish processing facility in midcoast Maine, CEI has provided $1.27 billion to 2,649 businesses, natural resource industries, community facilities, and affordable housing in Maine, the Northeast, and throughout rural America, leveraging over $2.55 billion in high impact, job-creating and sustainable economic development projects and enterprises.

CEI financing opportunities include:

  • Direct loans to start-up, existing and growing small businesses in Maine and beyond, in amounts ranging from $5,000 to $3,000,000. To view our business financing brochure, please click here.To obtain an application for a loan, please click here.
  • Venture capital investments in small businesses located in New England and the mid-Atlantic region. Investments range from under $500,000 to over $1 million.
  • New Markets Tax Credits are available for investments in targeted distressed communities in Maine, Northern New England, and upstate New York. Select projects with high 3E impact will be considered in other parts of the country. Tax credit investments range from $2 million to $30 million.
  • Affordable Homeownership, Rental and Supported Housing with loans and development capital from under $500,000 to over $2 million.
  • Equity
  • Solar project investments in communities with low to moderate incomes, providing good jobs and clean energy

Find out more by calling 207-504-5900.

Financing for business


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Financing Small Business Loan – Payday Loans Online, financing a small business.#Financing #a #small

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Tags : , , ,

Business Financing, business financing.#Business #financing


Business financingCEI

  • Home
  • Financing
  • Business Financing

CEI and its subsidiaries offer business and project financing and technical support for a wide range of small business, community facilities, renewable energy, affordable housing and mixed used real estate projects and ventures. With flexible business financing, loans, investments, rates and terms, CEI is able to leverage its capital with banks and other sources.

Since its first major investment in 1979 in a value-added, community-owned fish processing facility in midcoast Maine, CEI has provided $1.27 billion to 2,649 businesses, natural resource industries, community facilities, and affordable housing in Maine, the Northeast, and throughout rural America, leveraging over $2.55 billion in high impact, job-creating and sustainable economic development projects and enterprises.

CEI financing opportunities include:

  • Direct loans to start-up, existing and growing small businesses in Maine and beyond, in amounts ranging from $5,000 to $3,000,000. To view our business financing brochure, please click here.To obtain an application for a loan, please click here.
  • Venture capital investments in small businesses located in New England and the mid-Atlantic region. Investments range from under $500,000 to over $1 million.
  • New Markets Tax Credits are available for investments in targeted distressed communities in Maine, Northern New England, and upstate New York. Select projects with high 3E impact will be considered in other parts of the country. Tax credit investments range from $2 million to $30 million.
  • Affordable Homeownership, Rental and Supported Housing with loans and development capital from under $500,000 to over $2 million.
  • Equity
  • Solar project investments in communities with low to moderate incomes, providing good jobs and clean energy

Find out more by calling 207-504-5900.

Business financing


Tags : ,

Startup Financing – Small Business Funding, small business financing.#Small #business #financing


Startup Business Financing

Small business financing

Small business financing

Wouldn t you love to have a few million dollars to start your business? Me too! With a great idea and a great business plan, you probably feel almost entitled to get the funding you re seeking.

The reality, though, is that for most entrepreneurs, you must prove your concept first before anyone will put up that kind of money. But most businesses require some sort of initial capital for things like inventory, marketing, physical facilities, incorporation expenses, etc.

According to the U.S. Small Business Administration (SBA), While poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second. Sometimes it comes down to simple cash flow–many companies have closed their doors because they just couldn t make it another few months until the money came in.

When exploring your funding options, there are several factors to consider:

  • Are your needs short-term or long-term? How quickly will you be able to pay back the loan or provide a return on their investment?
  • Is the money for operating expenses or for capital expenditures that will become assets, such as equipment or real estate?
  • Do you need all the money now or in smaller pieces over several months?
  • Are you willing to assume all the risk if your company doesn t succeed, or do you want someone to share the risk?

The answers to these questions will help you prioritize the many funding options available.

  • Debt financing – You borrow the money and agree to pay it back in a particular time frame at a set interest rate. You owe the money whether your venture succeeds or not. Bank loans are what most people typically think of as debt financing, but we will explore many other options below.

  • Equity financing – You sell partial ownership of your company in exchange for cash. The investors assume all (or most) of the risk–if the company fails, they lose their money. But if it succeeds, they typically make a much greater return on their investment than interest rates. In other words, equity financing is far more expensive if your company is successful, but far less expensive if it isn t.

Because investors take on a much higher risk than lenders, they are typically far more involved in your company. This can be a mixed blessing. They will likely offer advice and connections to help grow your business. But if their plan is to exit your company in 2-3 years with a substantial return on their investment, and your motivation is the long-term sustainable growth of the company, you may find yourself at odds with them as the company grows. Be careful not to give up too much control of your company.

Let s take a closer look at the many options available for startups.

Friends and family are still your best source for both loans and equity deals. They are typically less stringent regarding your credit and their expected return on investment. One caveat: structure the deal with the same legal rigor you would with anyone else or it may create problems down the road when you look for additional financing.

Prepare a business plan and formal documents–you ll both feel better, and it s good practice for later.

Credit cards are a great tool for cash flow management, assuming you use them just for that and not for long-term financing. Keep one or two cards with no balance on it and pay it off every month to give yourself a 30 to 60-day float with no interest. And the low introductory rates on some cards make them some of the cheapest money around. Managed well, they re extremely effective; managed poorly, they re extremely expensive.

Bank loans come in all shapes and sizes, from microloans of a few hundred dollars, typically offered by local community banks, to six-figure loans by major national banks. These are much easier to obtain when backed by assets (home equity or an IRA) or third-party guarantors (e.g., government-sponsored SBA loans or a cosigner).

If you obtain a line of credit rather than a fixed-amount loan, you don t start paying interest until you actually spend the money.

Leasing is the way to go if you need big-ticket items such as equipment, vehicles, or even computers. Your supplier will help you explore this.

Angel investors fill the gap between friends and family and venture capitalists, who now rarely even look at investments below $1 million. Enlist a savvy financial adviser to structure the deal.

Private lending represents a viable alternative when the bank says no . Private lenders are looking for the same information and will conduct similar due diligence as the banks, but they typically specialize in an industry and are more willing to take on higher-risk loans if they see the potential.

There are many channels available to you to raise capital. All of the above approaches have numerous variations. Put together a solid business plan, talk to a financial adviser, and just start asking. Someone will eventually say Yes .


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Beyond the Bank Loan: 6 Alternative Financing Methods for Startups, small business financing.#Small #business

Beyond the Bank Loan: 6 Alternative Financing Methods for Startups

Many aspiring entrepreneurs have an idea for their business but lack the capital to actually start it. Brand-new businesses are often turned down for bank loans, and even if your business is established, funds can still be tough to secure. Loans funded by the Small Business Administration are usually more accessible, but they are becoming increasingly competitive.

So what options are left for someone aspiring to be a small business owner? Here are six options beyond bank loans for financing your startup.

Online lending

Online lenders have become a popular alternative to traditional business loans. These platforms have the advantage of speed, as an application takes only about an hour to complete, and the decision and accompanying funds can be issued within days. Because of the ease and quickness of online lending, economist and former U.S. Treasury Secretary Larry Summers said at the 2015 Lend It conference that he expects online lenders to eventually reach more than 70 percent of small businesses.

Editor s note: Are you considering a small business loan for your business? If you re looking for information to help you choose the one that s right for you, use the questionnaire below to have our sister site BuyerZone provide you with information from a variety of vendors for free:

Angel investors

Angel investors invest in early-stage or startup companies in exchange for a 20 to 25 percent return on their investment. They have helped to start up many prominent companies, including Google and Costco. Mark DiSalvo, CEO of private equity fund provider Semaphore said, You are likely to get an investor who has strategic experience, so they can provide tactical benefit to the company they are investing in.

Find out what makes angel investors fund a business here.

Venture capitalists

Venture capital is money that is given to help build new startups that are considered to have both high-growth and high-risk potential. Fast-growth companies with an exit strategy already in place can gain up to tens of millions of dollars that can be used to invest, network and grow their company frequently.

Brian Haughey, assistant professor of finance and director of the investment center at Marist College, said that because venture capitalists focus on specific industries, they can generally offer advice to entrepreneurs on whether the product will be successful or what they need to do to bring it to market. However, venture capitalists have a short leash when it comes to company loyalty and often look to recover their investment within a three- to five-year time window, he said.

Learn more about venture capital here.

Factoring/invoice advances

Through this process, a service provider will front you the money on invoices that have been billed out, which you then pay back once the customer has settled the bill. This way, the business can grow by providing the funds necessary to keep it going while waiting for customers to pay for outstanding invoices.

Eyal Shinar, CEO of small business cash flow management company Fundbox, says these advances allow companies to close the pay gap between billed work and payments to suppliers and contractors.

By closing the pay gap, companies can accept new projects more quickly, Shinar told Business News Daily. Our goal is to help business owners grow their businesses and hire new workers by ensuring steady cash flow.

Visit BND s guide to choosing a factoring service here.

Crowdfunding

Crowdfunding on sites such as Kickstarter and Indiegogo can give a boost to financing a small business. These sites allow businesses to pool small investments from a number of investors instead of having to look for a single investment.

Make sure to read the fine print of different crowdfunding sites before making your choice, as some sites have payment-processing fees, or require businesses to raise their full stated goal in order to keep any of the money raised.

Check out some emerging trends in crowdfunding here.

Grants

Businesses focused on science or research may be able to get grants from the government. The SBA offers grants through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Recipients of these grants are required to meet federal research-and-development goals, and have a high potential for commercialization.

Learn more about applying for a small business grant here.

Additional reporting by Katherine Arline and Nicole Taylor. Some source interviews were conducted for a previous version of this article.

Jennifer Post graduated from Rowan University in 2012 with a Bachelor s Degree in Journalism. Having worked in the food industry, print and online journalism, and marketing, she is now a freelance contributor for Business News Daily. When she s not working, you will find her exploring her current town of Cape May, NJ or binge watching Pretty Little Liars for the 700th time.


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