In Search of... Small Business Funding

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) March 17, 2010 -- Las Vegas NV - With many businesses still riding out the effects of the current global financial crisis, more business owners are choosing not to risk their own personal assets in pursuit of growth. Finance specialists from Turnaround Business Development Group have observed that business owners are more concerned about risk exposure and are choosing funding strategies that separates personal wealth and enterprise development.

Getting support from a Bank for a new business is tough, as many entrepreneurs will testify. One sneaky way is to apply for an unsecured loan while you are still in employment. If you have planned things right you will know when you are starting up, so a few months before you pack your job in, apply for a loan based on your salary. However, make sure that you can comfortably meet the repayments. There is no grace period; you will be expected to pay back immediately, so your business will have to start earning very quickly.

The alternative is a business overdraft facility. There is no fixed repayment date, although they will be for periods from 6 to 12 months, and all you have to do is ensure that you keep within the overdraft limit. You will have to write a business plan to present to the Bank which outlines your idea and the business.

Corporate Credit Cards

If you haven’t got any savings, can’t get support from family or friends, or a Bank loan or mortgage, then there are your corporate credit cards tied to your businesses credit worthiness! However, while it’s easy to draw down on your card, be wary! Credit cards are the most expensive form of debt.
They are ideal because all you may have to do is pay the minimum amount but card debt, as most people have found out, can be a long term burden. But, if you need a cash lump sum to kick start the business and you know you can pay it off within a few months, then it’s an alternative source of finance worth considering.

Business Grants

Government and industry grants are funds and resources available to small businesses to assist in various aspects of business development and growth. A wide variety of grants are available both for general business assistance as well as grants tailored to specific industries. Government and industry grants can provide financial assistance, seed capital and other resources for research and development, new business start up, employee training and skills development, new product development, business growth, and new market development. Government and industry grants can be a valuable source of financial assistance and support to help take your business to the next level.

Angel Investors
A popular way to fund a business is Angel Investors. These are people, usually retired or successful business people in their own right, who are looking for opportunities to invest in new businesses.

In exchange for an investment they will typically look for a shareholding in the business and some hands-on involvement. They will have a vast business experience and so are useful people to have on board. However, you will have to accept an element of loss of control but that needs to be balanced against your desire for funding.

Getting finance for your new business can be a challenge but there are a number of avenues to explore and so with dedication and focus you could soon be on your way to finding the funding you need for your small business.

small business funding