Introduction
Finding money to start a small business
takes a lot of work. To start with
you will need a good business plan
and several leads for small business
loans and grants. Follow these ideas
for getting money to start your small
business.
Instructions
Difficulty: Moderately Challenging
Things You'll Need:
- Business plan
- Collateral
- Relatively good credit
Steps
Step One - Develop a business
plan.
You will need a quality business
plan before you apply for small business
grants and loans. A business plan
should explain what your business
does, what makes it special, how it
has performed in the past and how
you expect it to perform in the future.
It will also need to identify your
competition.
Step Two - Visit your local
branch of the Small Business Administration
or visit their website.
They have several great financial
assistance programs and loan programs
that you can learn about such as the
SBA loan and disaster assistance loans.
Step Three - Visit your bank
and ask if they offer SBA loans.
Most banks are going to offer this
type of loan. Fill out an application
and submit it with the requested documentation.
Most likely you will need to submit
with your application your business
plan, your tax returns for the last
3 years, financial statements and
possibly information on your collateral.
Step Four - Look for other
small business loan providers. Capital
and Bank of America are two companies
that offer small business loans.
Step Five - Request an application
and instructions from your new small
business loan leads.
Read through the material and make
sure that you qualify for the loan
before you apply.
Step Six - Consider your
alternative money sources to small
business loans.
For example you may want to apply
for a business credit card which can
offer you a line of credit up to around
$20,000. If you own a piece of property,
or if you have other valuable pieces
of collateral, then you can also apply
for a business line of credit. The
amount of money that you can borrow
from a business line of credit ranges
between $15,000 and $50,000.
Step Seven - Apply for a
HELOC, home equity line of credit.
If you own your own home and have
earned equity in it then you can apply
for a HELOC. A HELOC is a revolving
line of credit that is secured by
the equity in your home.
Step Eight - Network to find
grants, investors and small business
loan opportunities.
For example you can join the National
Venture Capital Association. Membership
in this organization will provide
you with several networking events
that you can take advantage of to
meet with venture capitalists.
Tips & Warnings
The interest charged by a HELOC
is usually tax deductible.
The SBA doesn't offer money directly
to borrowers any more. You will need
to apply through a bank or other financial
institution that offers SBA loans.
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