Funding for a home business can be a difficult business, especially if the owner was previously an employee and venture for the first time. Banks often hesitate to lend the solopreneurs or business owners for the first time and prefer to see more than one year of operational result before making the decision to lend. Here are some more realistic financing options for new business owners to continue:
Related party loans
Approach friends or family members with a loan application can be your best option. After all, they know you personally and are likely to stay behind your idea. Do not assume, however, that these types of chords should be done on a hand handle. You will need to convince your potential investors with a verbal and written plan with realistic projections prepared by you and your accountant (preferably a certified public accountant). You will also need a loan agreement that all parties need to sign before checks are written (preferably prepared by a lawyer).
Peer loans for companies
Borrowings to other people are made possible through peer and peer loan networks. Your chances of being financed by online channels are particularly good if you already have a strong and active social network via sites such as Twitter or Facebook. Simply make a compelling affair and direct your followers of your twitter and followers on Facebook to your fundraising page. There are many peer loan opportunities for online businesses, first make sure you first look for your options.
SBA loans
If you need access to a large loan (more than $ 50,000, for example), you may want to consider pursuing an SBA loan. Visit SBA.GOV to learn more about this process and find a lender near you.
For online retailers
If you run an online business, you may want to consider financing your business via Kabbage.com. It is an Internet funding company that allows the business owner to apply online, to link payment accounts and obtain a quick loan decision. If approved, business owners can operate $ 50,000 businesses that can be used to finance inventory purchase or improvements such as changes to website design.
Whatever the method you choose to continue, be prepared to share the financial history, projections and the unique brand of your company with the potential lender to get the best chance of getting the funding you need. Also schedule to invest at least a part of your own money from savings or credit. This shows your co-investors that you have a strong commitment to your business idea and will also pay special attention to the daily financial details of your business. As mentioned earlier, it is also an intelligent movement to consult a CPA and a lawyer before committing any financial agreement.