where can i get finance to start a business?

Question

I have been to business link and all they want to do is send me on a 'how to write a business plan' course. I have been to the bank and was advised not to get a business loan due to high interest rates and the bank wanting me come up with at least 20% of the total amount of borrowing.
Does any one have any other suggestions?

Answer 1

ill give you £1 sounds crap but if everyone else does it you'll get millions

Answer 2

Every body wants finance to start a business. If getting finance was so easy everybody would be getting it. I'm surprised that some bank said that you need to have 20%. It is a good deal. Take 80. No other bank would make the offer. The other course is write a business plan and submit it to venture capitalists. If you have been successful before you've a good chance. You have to have a team. Successful team to jpoin you. But venture capital will be possible if you have a very good one of a kind idea that will make billions. out of the venture capital they supply.

That is why people are not able to start businesses.

Answer 3

If you're thinking that you'll get a government grant you're off your rocker. Believe me, there are none out there. Financing depends on how much you need. There's a lot of good answers here. If you only need a little, say a few thousand, try friends, family and network your way to some rich people. Above that I recommend using a bank through a guarenteed loan with the SBA http://www.sba.gov. Banks are a good deal (as opposed to a bad deal like another answer said). First, banks rarely take risks. If they don't want to invest in your business there is probably a reason...something's wrong and you need to find out what. Second, the rates are much lower than VCs and angel investors. VCs get as much as 75% of your business and they will get rid of you if they want as they are the mijority owners. The Small Business Development Center http://www.sba.gov/sbdc in your state will help you get your financial statements (even pro forma) in order to present to banks etc. But as I said, friends, family, or working with an SBA guarenteed loan are your best bets.

Good luck!

Answer 4

If you are having trouble with the capital requirements set forth by a bank then you should consider Capital Asset firms in your area. There are lots of capital firms that specialize in this kind of lending. The downside is... they will charge very high interest rates and/or want partial ownership in the business venture.

Consider searching for "capital firms" + your geography. Unfortunately without the 20% capital inlay you won't be able to find anyone to lend you money at a reasonable rate. If the business idea is a "slam dunk", talk to friends/family to seek out a wealthy person you could take on as a silent partner. Otherwise the capital firm is your best bet.

Also, any organization that will lend you money will require a detailed business plan. You should have one anyway.

Answer 5

In the US: the small business association is your best bet for low interest loans:

http://www.sba.gov/financing/index.html

If you want a business loan, then you'll want to check out that 'how to write a business plan' course, or else there's a great book I have by Rhonda Abrams on the subject.

Alternatively, if you have a 401(k) you can sometimes borrow money from that, take out equity in your house, or borrow from a family member.

If you have an idea for a business that could grow very rapidly in the future, a venture capital firm might be interested in giving you the money in exchange for a percentage of the company. That's a very popular route for tech companies, but almost every one of them has got a proof of concept in place to convince the VC's to give you the money.

Answer 6

Conside this, you don't need a loan to start this. Have you heard of Google Adsense program? You can make some legitimate money if you have a blog at Blogger.com of a free website like Google pages which will allow you to publish Google Adsense with no cash investment. http://tashi.web.design.googlepages.com/website-sponsor

It's very personal and it depends on how you define a good career or business. First, set a goal for what? do you want in life. Plan what you will do to reach your goal.

I always tell people this, 'You can make money if you can create website or blogs'. by providing free and good information.

I'm 41 now, work from home in shorts and T-shirts and sometimes topless. I set my target as low as to make 1 dollar/page/day. I strive to create a new page for my websites everyday but I have all the freedom I need and making money 24/7 on the internet with Google Adsense and some affiliate programs. The only thing that tie me down is 'how much income I want or need'. Because the more websites and traffic I have will determine how much income I can much.

Anyone who can create websites or blogs to provide lots of good information can make money from Google Adsense. Blogger.com and Google pages lets you create blogs for free and allows you to make money too.

You can make money by joining me or Google as a publisher and publishing Google Adsense on your websites. If someone clicks on those ads, you will earn money.
I'll be working on this website http://tashi.web.design.googlepages.com soon after I'm done with my client's website.

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Answer 7

You can apply to the government in the form of a Grant for small business. This way you would not have to pay it back as you would if you went to a bank.

Answer 8

In the UK apply online for a commercial loan at

www.surefirefinance.co.uk

They should be able to help.

Answer 9

depending on your age,(i think under 30) the princes trust can help with things like that?They must have a website ?good luck