Where can I find funding for a small business?

Answer 1

To get started, I suggest contacting the Small Business Administration Financing Page (SBA) – links below. Entrepreneur also offers a great site dedicated to money & finance – see below.

Research, research, research – this cannot be stressed enough. Read as much as you can. Here are some book titles that are relevant:

* Free Money for Small Businesses and Entrepreneurs by Laurie Blum
* Finding Money: The Small Business Guide to Financing (Small Business Series) by Kate Lister, Tom Harnish
* Financing Your Business Dreams With Other People's Money: How and Where to Find Money for Start-Up and Growing Businesses by Harold R. Lacy
* No Cash No Fear: Entrepreneurial Secrets to Starting Any Business with No Money by Terry Allen
* Starting on a Shoestring: Building a Business Without a Bankroll by Arnold S. Goldstein

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 2

Try SBA first, this is the small business association, they help people fund small businesses they have a website with a lot of info. you will need good credit though, this is the same for any bank you will go to. If your credit is not so good, look into alternative loans, friends, family, investers. You can always take in a partner too, but be careful and get everything in writing. Research and make sure you know what you are getting into. It can be great and it can also be a nightmare. Good luck.

Answer 3

A couple of options:
1) Find local bank that will finance your business type (VERY IMPORTANT). Call first and discuss your needs in details.
2) Unsecured loans (only for individuals with excellent credit score):
http://www.AmericaOneUnsecured.com/?AID=47737
4)Credit cards (apply for 0% credit cards and than do a roll-over to the next 0% credit card at the end of introductory period):
http://www.blquest.biz/credit_cards.htm
5)Use commercial loan broker who has access to non-banks and private lenders :
http://www.blquest.biz

How to apply for a business loan with the local bank:

Create business plan. It must include projections for at least 2 years.

Make sure you have 20% - 30% down payment

Make sure you have collateral. The following is the formula to calculate collateral:
Collateral = (Personal Real estate value*0.8 – Mortgage) + Commercial Real Estate Value * 0.8 + Equipment value *0.5 + Inventory *0.1

Make sure your credit score is 680+. Pre-Paid legal service will not only send you credit report but will also clean it in case of identity theft.

Make sure you have relevant experience. Banks will never finance career change.

Collect all necessary financial documents:
1)Personal tax returns for the last 3 years
2)Business tax returns (for existing business) for the last 3 years
3)Profit And Loss statement year to date

Find local bank that will finance your business type (VERY IMPORTANT). Call first and discuss your needs in details.

Complete loan application – make sure there is no arithmetical errors, mistypings and all personal financial information is correct.

Submit the complete package – all documents that were requested by the loan office, in the order that was requested to the bank.

Good luck,
Marina Lando
President
Business Loan Quest
http://www.blquest.biz

Answer 4

SBA - Small Business Administration, Local Chamber of commerce could point you in the right direction as well

Answer 5

Some banks extend what they call "small business lines of credit" often through credit cards. Those are easier to get and can be based on your credit history alone. They typically are up to $100,000.

For example, Wachovia's has various business lines of credits http://www.wachovia.com/small_biz/page/0,,446_612_1399,00.html Their business line of credit can even be approved overnight,

However, if you're applying for a loan and if it is a big amount, banks and even the SBA http://www.sba.gov/financing may consider other factors aside from your business credit:

- A business plan explaining what the business is

- Your background and experience in the business -- in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you

- Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application

- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you

- Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

Aside from banks I suggest you consider microloan providers. They typically fund up to $30K Read about the SBA Microloan Program http://www.sba.gov/financing/sbaloan/microloans.html

Your Credit Card

Using Credit Cards to Finance Your Startup
http://www.entrepreneur.com/article/0,4621,290366,00.html
Credit Where Credit Is Due: Using Plastic to Finance Your Start-Up http://www.inc.com/articles/1999/08/16625.html

Your Family Members and Friends

Accepting Start-Up Capital from a Family Member: Good or Bad?
http://www.powerhomebiz.com/blog/2006/08/accepting-start-up-capital-from-family.html
Borrowing Startup Funds From Friends & Family http://www.entrepreneur.com/Your_Business/YB_Node/0,4507,159,00.html

You may want to go and pitch your ideas to angel investors . Business 2.0 http://money.cnn.com/2006/02/28/magazines/business2/angelinvestor/index.htm has a very good article on angel investors, what they typically look for, what kind of investments they support, etc.

Angel Capital Association http://www.angelcapitalassociation.org
Angel's Forum http://www.angelsforum.com
Band of Angels http://www.bandangels.com
Common Angels http://www.commonangels.com
Keiretsu Forum http://www.k4forum.com
Launchpad Venture Group http://www.launchpadventuregroup.com
New World Angels http://www.newworldangels.com
New York Angels http://www.newyorkangels.com
Prairie Angels http://www.prairieangels.org (charges $125 to submit idea)
Robin Hood Ventures http://www.robinhoodventures.com (charges $250)

Forget about grants. It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for a for-profit business.

Answer 6

Most banks (esp. community banks) are also SBA lenders. Call around your area and request to speak to their SBA lending officer.........

Answer 7

go to salamonbrothers.com

I did it from thier and they were great!