What are the different kind of business funding programs are there?

Most people think of business funding as loans, but there are many ways to get operating capital for your business. For any of them you will have to do some of the basic footwork to create good business fundability such as obtaining vendor credit, getting a few business credit cards, and opening a business bank account. However, each source of business funds look at those things differently. You can find out how to build your company's credit within the Business Fundability System. When you are ready and need a source of cash for your business you should stop and think about what you need the money for, how your business fundability looks and if you can repay the money.

The reason for the last part is there are two types of business funds that do not require repayment, and a third that doesn't require repayment in the strictest terms. Bank Loans The obvious source of cash for your business is a straight loan from a bank. Getting a loan in your business' name isn't tricky, but it can be difficult if you aren't established. You will need very good business credit built up, have a reasonable source of income from your business to repay the loan plus interest. Grants have the huge advantage of offering businesses various amounts of capital without requiring repayment.

You won't have to pay back the initial loan or any form of interest. However, getting a grant can be quite frustrating. First you have to find the grant that applies to your specific situation. Then you have to generate a compelling grant proposal and convince the grant committee you deserve the money. Once you get the grant you're not done. You have to use the money exactly as you promise to according to the grant stipulations or according to your application. Some grants have other stipulations such as creation of a certain product or service. Some are given to provide working situations for minorities or other priorities according to the grant description and you must adhere to them. Venture Capitalists Getting money from a venture capitalist is another way to get money you do not technically have to pay back.

There are no loan payments, there is no interest, but you will have to give them a portion of ownership in your company and their share of the profits you eventually make. Many times a venture capitalist will be a silent partner, but at other times they may step in and take charge if your business isn't showing the productivity that is expected, or making profits the way it should. Personal Financing The final way of getting money for your business is to scrape it together yourself from outside jobs, or from friends and family. Depending on the source of this capital you may not have to pay it back. Other times you may be able to pay back the money as you can without worrying about being on time with a payment, and this type of capital may even be interest free if you get the money from your own work or from family members.

Unsecured Business Loans - Up To $50,000 (Start Ups Too!)

Unsecured Business Loans Up To $50,000

Borrow funds for purchasing equipment, remodeling, or expanding your business premises. Not all businesses are alike when it comes to money management. An unsecured credit line could be the answer.

Easy Access When you are approved for a credit line, it allows you to make draws on your line whenever you want. You have the ability to use your credit whenever you need it.

Quick Turnaround

You can have an answer quickly. Being able to respond to new opportunities fast is what being an entrepreneur is all about.

Competitive Rates

With a start up credit line, you only pay interest on what you actually draw down on your line, allowing your borrowing costs to always be competitive.

No Collateral Required

With an unsecured line of credit your business is not required to pledge any collateral to secure the loan. You are evaluated based on the strength of your business and your personal situation as a principal and as a guarantor.

Click here to maximize your money with a unsecured business loan.

27 Mistakes that Will Get You Denied for Business Credit and Loans… And How to Get Approved

Start Up Costs for a New Business

Before beginning any new business endeavor, you need to know how much money it will take to take it all the way through to a profitable position. If you don’t have those figures in front of you before you begin, chances are you will be unprepared when needs arise, and the business could fail. 

Many new business owners understand the importance of knowing the financial aspects of a startup. Unfortunately, too often new business owners want someone to sagely give them a magic number, and tell them exactly what they need to start a business. There is no magic number. No two businesses are enough alike to even give an estimate on a particular type of business.

Unless a company is a franchise, and controlled by a corporation it isn’t possible to lump start up costs into a category that is a one-size fits all. Getting the numbers is possible, but each new business owner must do the work to find them for themselves.

How to Determine a New Business Start Up Costs

The best way to really understand what it will take to get started and keep a business running until it can support its own operation is to create a business plan. Some new business owners try to simply assess standard costs such as the price of renting space, initial cost of equipment, supplies, phone and utilities. The problem is that even though these costs will give the owner an idea of what it will take to open the “doors” of their company whether it is a brick and mortar company or an online business, it doesn’t give them an idea of what it will cost to operate through the early stages where expenses often outnumber the profits.

The start up period does not end at the opening of the company. A business plan that covers a realistic estimate of all expenses and expected profits over several years will give the new business owner a true idea of what it will take to make their business a success. While a business plan can be broken down into weekly, monthly or yearly profit/loss budgets, it is easier to develop a weekly or monthly budget for development. Once the figures have been computed, it can be put into a typical business plan format that also includes all of the pertinent information about the company, its owner and principle employees at the beginning.

Having the initial information at the start of the business plan is helpful for lenders when a business owner applies for funding at any point in the business’ lifespan. It has a dual purpose at the start of a business, however. Putting the pertinent information down on paper helps the business owner research proper licensing, and evaluate the skills of themselves and any key personnel they are working with.