I'm trying to start my own buisness, but need 10K capital to invest? What are my financing options?

Answer 1

If you need only $10K, you may want to check out microloan providers. The Small Business Administration (SBA) introduced its Microloan Program in 1992 to provide for startup or growing small businesses. Under the program, qualified borrowers may be approved for loans for use as working capital, inventory purchase, procurement of supply, fixtures, machinery and equipment.

The loans are distributed through non-profit community-based lenders or intermediaries, and not at SBA directly. While each intermediary sets their own criteria for loan eligibility, the general requirements include some type of collateral, and the personal guarantee of the business owner. The collateral may include equipment, contracts, inventory or other property

Here is a state-by-state list of SBA-accedited microloan providers that you can contact http://www.powerhomebiz.com/vol145/microloanproviders.htm

Other sources of capital may be:

- own sources of funds such as your savings or 401K
- credit card (if 10K is all you need, the easiest would be credit cards -- but they can be pricey depending on how high the interest rates of your cards so take note)
- family, friends and relatives
- SBA Loan where you are also required to provide equity investment, collateral, good credit record, etc. Here are the eligibility requirements of SBA loans http://www.sba.gov/financing/

For in-depth information, check out the following books

Financing Your Small Business
Small Business Financing: How and Where To Get It
Financing the Small Business: A Complete Guide to Obtaining Bank Loans and All Other Types of Financing
The SBA Loan Book
Angel Capital : How to Raise Early-Stage Private Equity Financing
Financing Your Small Business (Barron's Business Library Series)

If you need help in finding financing for your business, you can get free advice from the following organizations

- Government Mentoring Programs such as SBDCs, which works with community colleges and local business development councils to offer mentoring programs http://www.sba.gov/sbdc/sbdcnear.html ; or the Women's Network for Entrepreneurial Training http://www.sba.gov/womeninbusiness/wnet_roundtables.html
- Volunteer programs such as SCORE http://www.score.org which is composed of mostly retired executives and entrepreneurs
- Formal mentoring programs such as Athena Foundation http://www.athenafoundation.org/programs/globallinks.html , Helzberg Entrepreneurial Mentoring Program http://www.helzbergmentoring.org/HEMP/ , or The Aspen Institute MicroMentor Program http://www.micromentor.org
- Professional organizations such as the National Women’s Business Council http://www.nwbc.gov/Mentoring/programs.html
- Industry and trade associations
- Local business groups, such as the chamber of commerce
- Local chapters of business groups

Answer 2

One bet would be going to the SBA and seeing if they can assist you with getting a loan. By going through them, they can leverage a better loan then you would be able to get on your own.

One note to caution, depending upon your business in mind, the 10k you estimate may not be enough for continued opperations for your business. You should really forcast your expenses and make sure that the inital loan that you are requesting will be enough for 6months-one year before your business will become profitable. Last thing you want when starting out is to ask for 10k then find out a few months later you should have asked for 15k, because getting that 5k afterwards will be much more difficult. A bank will think that your business is failing, when its in fact doing well but you need the extra capital to keep up with demand.

The third thing you can try is going to a private bank yourself. Only go if you have a sound business plan, they will examine it and assess the risk of the loan based upon it. Also Small Businesses are more risky then a Mortgage so the rate will be higher.

Goodluck!

Answer 3

I'm not sure where you are, but in Canada there are a few options but unless you have very good credit and a very good business plan, it's not as easy as they make it look to get assistance.

Most people start by using their savings, borrowing from family and friends, which I would hate or going to their banks but unless you have at least 30-50 % to put into it the banks usually won't look at a business loan. They may give you a personal loan though.

The next place to look, if you have a good business plan is Business Development centres. These are good because if you had been on Employment Assistance in the last three years, you will be eligible to receive Employment Assistance for 1 year after you start your business.

And then there are government grants but again they are difficult to receive and there are a lot of stipulations.

Answer 4

Contact some bank or VC for funding, but with a solid business plan and financials built in.

CA. Deepak Bholusaria

Answer 5

No need that 10K to start it..

U can start doing own business and making money online right now(monday-friday only) as forex trader... they will give you Free 5 usd to start it and $ 10,000 for training.. ; )

here is the link.. just signup ok?

http://www.marketiva.com/?gid=4354......

But make sure u open for E-gold A/c first.. Also free to open it..

Open your E-gold A/c here..

http://www.e-gold.com/e-gold.asp?cid=292...

Hope can help u.. ; )

Answer 6

You likely have a small business administration office near you. Contact them. They can guide you.

Answer 7

Very difficult or impossible, to obtain a loan for busines start up.
If you have comparable assets for collateral, that will do.

Answer 8

initially you may be faced with getting the funding from Credit cards, personal loans, and family. Good luck with it!!