Small Business Financing Guide
Cash Flow is King
Cash flow is king in the world of small business and it pays to know just how much your company needs to keep its doors open. Once you have determined the need, you can go about the task of obtaining the necessary financing from one of several sources available to most entrepreneurs and existing small business owners.
Determining Capital Needs
The first step in financing a small business is to determine capital need. This is easier with existing companies that have available operating data. With newer companies, the business owner will need to include enough money in the budget to keep the business afloat until it can support itself.
Loans
Small business loans are a great way for a company to leverage its assets and get much needed working capital. Loans are available through a number of sources including commercial banks, local savings and loans, private lenders, and even the government.
Lines of Credit
Business lines of credit are similar to credit cards in that they are considered revolving debt. You can charge, pay, then charge again, up to your maximum credit limit. Lines differ from credit cards in that they have finite terms, such as a year or two, after which they need to be paid off in full or renewed.
Grants
A grant is a money gift that does not have to be repaid. It is usually offered as a lump sum, or over a short period of time. Some grants can be renewed each year.
Other Sources
If your business does not have stellar credit or cannot obtain money from one of the previously mentioned sources, you will have to think outside the box. One of the easiest ways to obtain small business financing is to ask family and friends.
Read the full article at: http://smallbusiness.chron.com/small-business-financing-guide-662.html
Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.
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