Small Business Financing!



When thinking about small business financing, always start by looking at any self financing options you may have available.

Self financing is the number one form of financing used by many business owners after they decide to start a business. You may be asking what assets do you have or what can you use for your business financing.

Here are some of the most common assets business owners may use:

equity in real estate,
savings accounts,
retirement accounts
vehicles.

You may also have something you want to sell rather than applying for a business loan.

Another option is to look at any available credit you have on your current credit cards, but this can be a very expensive way to go, unless they can offer you a very low or 0% APR for a period of time.



After you have inventoried all your personal assets, and you still find yourself needing more, here is a list of some of the most popular forms of financing you may want to consider:

Secured loans – requires some kind of collateral, but normally offers a lower interest rate

Line-of-credit loans – allows cash available to you when you need it and some banks may offer a revolving lines of credit so as you pay back the loan, the cash is made available for you to use over and over

Balloon loans- only interest payments are made during the life of the loan and then a balloon payment of the full loan amount is due on the final day.

Talk to your bank or commercial lender about these loans and other small business financing loans they may offer. Allow them to help you decide what type of

small business loan would best fit your business and budget.

After you have gotten the loan, be sure to take a close look at the loan agreement. Look over it carefully and read all the fine print. You want to make sure you fully understand what you are getting yourself into.

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