Financing Options for Small Businesses
Starting your own business can be an extremely rewarding experience.
With a solid business plan, a quality product, and steadfast dedication, any budding entrepreneur can run a successful business. Before you can launch your business, however, you need to secure financing. There are many different potential sources of financing, such as: self-funding, friends and family, and credit cards.
SELF-FUNDING: The first source of financing for your new small business is yourself. It should go without saying that you should be in good financial shape before you decide to start a business. It is extremely important to prepare for this endeavor by building up your savings, paying down any personal credit card debt, and cutting down on personal expenses. All of this takes an enormous amount of discipline. There are other ways to self-fund your business, such as selling off personal assets, applying for a zero- or low-interest credit card, and using your savings. Investing personally in your vision is important because it shows other potential investors that you are all in.
FAMILY & FRIENDS: Borrowing from family and friends is one of the most effective ways to secure financing for a new business. Your loved ones are more likely than anyone else to believe in your business vision and to want to help you succeed. Keep in mind that when you are dealing with family and friends, it is important to recognize the personal nature of the transaction. Always be upfront and honest and make sure to borrow only what you absolutely need.
BUSINESS LINES OF CREDIT: Small business credit cards is also another valuable tool to utilize when funding your business. It is a tool that we offer as a loan product here at #TeamHudson. These lines of credit are a great way to manage your finances, but make sure that you are able to make payments on the card or your debt can quickly get out of control and affect your credit rating. This can be an ideal option for entrepreneurs who need a financial pick-me-up but can quickly pay back the debt.
Though helpful, self-financing your small business can only get you so far. At some point you will likely need some sort of outside financing, which is why our world-class service can help you. With a 95% success rate, we work with every type of Business Owner and Investor, helping them achieve major success in their Loan requests!