Financing Your Business

I am planning to start a business in my home town and want to know about financing my business. Will you please tell me ways how can I finance my business so that I can grow well and in short time and tell me how can I increase my chances of securing a loan?

[Kiran Chandar]

If you’re planning on starting a business, chances are you’ll need some form of capital, which simply refers to the money that finances your business.

Ask yourself:

How much money is required to start this business?
How much of your own money do you have for this business?
Do you already own any of the assets needed to start this business?
Do you have family, friends, acquaintances, or others who are willing and able to invest in this business?
Do you have a strong personal credit rating or lines of credit available?

Ways to finance your business:

1. Get a Bank Loan
2. Use a Credit Card
3. Tap into Your 401(k)
4. Try Crowdfunding
5. Pledge Some of Your Future Earnings
6. Attract an Angel Investor

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7 Secure an SBA Loan
8 Raise Money from Your Family and Friends
9 Get a Microloan
10 Consider Factoring

You can increase your chances of securing a loan by:

Having strong management and staff
Showing steady business growth potential
Showing reliable projected cash flow
Offering collateral
Having a strong personal credit rating
Always making your loan and interest payments on time, and never missing a payment