|
Work
At Home >> More
Money-Management Articles >> Seven Sources of Funding Your Business
By Massomeh Indanan Are you all
ready and raring to go to launch your small business, but still lack that
financial boost? There are many ways to get the capital for your business
idea. I have here several really good sources for finding the funds to get
your business started or to make it grow.
1. Family and Friends
Some people are lucky they can borrow money from friends or family to
start up a business. Compared to credit cards, this doesn't put your
credit rating at risk, but it surely can put your family reputation on the
line.
2. Government Loans (SBA)
This is short for the U.S. Small Business Administration, a government
agency that helps Americans start and manage small businesses by providing
loans, disaster assistance, advocacy and training. www.sba.gov
3. Peer to Peer Lending (Prosper)
Prosper is an online auction site where people can lend money directly to
each other. Borrowers set the maximum rate they wish to pay and lenders
set the minimum rate they want. Prosper matches borrowers with lenders and
manages loan repayment. Lenders can get started with as little as $50 and
borrowers can receive unsecured loans up to $25,000. www.prosper.com
4. Venture Capital Firms
A venture capital firm is a financial intermediary that pools the
resources of its partners and uses the funds to help entrepreneurs start
up new businesses.
5. Home Equity Loan
It is sometimes called a second mortgage. Borrow from a bank or mortgage
company using the equity in your home as collateral.
6. Credit Cards
It can be tempting to start-up your business with money from a credit
card. Be careful to at least make the minimum monthly payments to protect
your credit rating.
7. Angel Investors
The typical angel investor is a retired business executive or business
owner. Angel investors can usually provide more money than friends or
family, and credit cards.
The loan usually ranges from $20,000 up to 2 million.
www.inc.com
All of the above resources are equally useful in their own rights. You
just have to know which one is more beneficial to your business and
situation.
Choose Wisely.
This article was added on: April 16, 2006.
|
