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How to Secure Small Business Financing

Posted February 20, 2013 by Sonia Jackson to Financial Advice 0 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

Getting financing for a small business is sometimes harder than getting funding for a larger business. This is because small businesses are often very risky businesses. They are also harder to correctly judge when it comes to potential future success. In many cases, the success of a small business relies upon the person starting it. These facts (amongst others) are reasons why getting financing for a small business is hard. Here are a few ways you can make it easier on yourself.
Credit card
It is easy to get a credit card these days, even though there is a global economic downturn. You can use this fact to your benefit and get a credit card. They are easier to get than a business loan or overdraft, and give you access to a few thousand dollars to use as you wish.
Sell off your own property
You can sell of things in your home, or you can sell off your car, buy a cheaper one, and keep the excess cash. You can sell off any land or buildings you own, and even sell off your family treasures if you like. The point is to get as much money as possible in a short space of time so that you can finance your new business venture.
Save up the money
Put ten percent of your wages in the bank and save it every month; do this for a year or two and you will have the money to start up your own small business. The hardest part is not spending the money as you are saving it.
Personal loan
You can get a personal loan and tell the lending agency that you are going to decorate your home. Very few lending schemes will ask for receipts for your purchases. Get a personal loan and use it to finance your small business. It is a lot easier than getting a business loan or overdraft.
Business loan
You will need a business plan and probably need some form of collateral. Nevertheless, you can go out and get a business loan if you like. It is the correct method for starting your new small business, and if you can get your business plan past the lender, then you are half way to starting your business.
On very rare occasions, you may find a company or organization that will give you a grant to start your business. It would be unwise to plan to get a grant, since they are very difficult to get.
Investment angels
There are websites that will help people by investing in them. Some will put you in contact with investors who may help you to start your business, but will often ask for something in return. Investors of this nature are very rare, and very difficult to find. You are going to find many websites that offer to put you in contact with investors. If they start asking for personal information, bank details, or payments then they are not real. If people are going to invest in you then give them your Skrill or PayPal account details. Do not give out bank details, no matter what reassurances the website gives you.
Borrow from your family
You could always try getting the money from your family and friends. They will probably tell you to take a running jump, but it is worth a shot if you have really run out of options.
Partner up with someone who has money
You will probably have to approach ten thousand people before you are able to find someone willing to partner up with you. The deal is that they invest the money for a share of your business, and they do all the work to give them a share of the profits. It seems like a crummy deal for you, but they are the ones with the money, and you are the one without money or a business.

About Sonia Jackson: Sonia Jackson is a writer for custom-essay-writing.org. She’ll help you to solve all problems with writing different essays and research papers in a short time; she’ll answer all your questions and give you useful advice.

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