Bank or Credit Union Funding
Startup businesses are considered risky by banks and credit unions, so you might have a hard time getting access to loan money through these organizations. Before you apply for the loan, talk with the financial institution to learn more about the factors they are looking at when they make decisions about loan financing.
It is necessary to have a strong business plan in place, and you should take that business plan with you when you are applying for the loan. Sometimes, a financial institution might offer the loan with your personal name as guarantor. So, make sure that you are ready to carry the financial burden if needed.
Venture Capitalists or Angel Investors
If you can’t qualify for a loan through your bank or credit union, consider the option to work with venture capitalists or angel investors. These small business loans are private financing from individuals or companies who see value in your business.
Again, you will need to have a solid business plan in place to show the potential of the start-up. Network with other business owners and entrepreneur groups in your local area to find venture capitalists that might be interested in your business. Also, you can talk with your local Small Business Administration (SBA) to connect with people in your area.
DIY or Business Advisor
When you are trying to secure and manage funds for your business, it can be very beneficial to work with a small business advisor. A business consultant will help you get your business on track and then thrive. As a small business owner, you wear many hats. From securing business loans to a variety of other financial services, small business advisors can provide you with expertise that only comes with training and experience.
Charles P Myrick CPA, specializes in accounting and business advisory services for new business start ups and entrepreneurs. If you are a new entrepreneur, give us a call. We invite you to learn more about the small business accounting services that are available: (202) 789-8898.