Warning We use cookies to personalise ads and to analyse our traffic. We also share information about your use of our site with our advertising and analytics partners.

Accept our cookies and get unlimited access.

Financing Your Own Business

Financing Your Own BusinessFinancing Your Own Business

In these tough economic times, many people are facing employment challenges. If you are struggling to find a job or maybe you are ready to leave your current job for a career you enjoy more, you may consider opening a small business. Small businesses allow you the flexibility to be your own boss, choose your own hours, and best of all, do something you love.

One of the most difficult things about starting a small business is financing it. There are different avenues you can try, depending on the size and scope of the company you are trying to create. You may choose self-financing, the business loan finance path, or opt to seek out investors, among many options.

If you have enough capital to finance your venture yourself, that is obviously ideal. That way, you can shape the company to exactly match your personal vision. Additionally, you do not have to worry about monthly payments or owing other people. Of course, this is not a plausible route for most of us, and so we must consider more viable paths.

Acquiring a business loan is one alternative. The Small Business Association (SBA) in the United States is a great source of such loans. Depending on what type of business you hope to open, the size of it, and the feasibility of your business plan, among other factors, they can offer you loans at an affordable rate. You may also choose to go through a bank or other financial institution. Before signing any loan contract, you should research all the available options to ensure that you are getting the best rates possible.

If you would rather not have a loan, or cannot acquire a loan to cover all the initial capital you need, investors are another option. Especially now that other investment options are offering very low returns, many people with excess wealth are eager to put their money into a business with good potential returns. Of course, you will need charisma to convince such people that your venture is a worthwhile investment. Whether you choose investors, a loan, self-financing, or any combination of the three, you can realize your dream of starting your own business with a little research and legwork.

A home equity loan can be handy when it comes time to finance a major life expense like home remodeling, a child’s college...
A home equity loan can be handy when it comes time to finance a major life expense like home remodeling, a child’s college education, or maybe even purchasing an investment property. This is the time when you get to reap the benefits of all those years paying a monthly mortgage. In simple terms, this type of loan allows you to borrow against your home, using the capital you have sitting in it as collateral. As with any other type of loan, banks have stringent lending procedures, but if you’ve been tending properly to your credit score and other areas...
Debt consolidation is not the answer to all financial problems. While these types of loans can be beneficial, it is important...
Debt consolidation is not the answer to all financial problems. While these types of loans can be beneficial, it is important for a potential borrower to learn all the facts before making a final decision. Defining Debt Consolidation Loans A consolidation loan is a specific loan that allows the borrower to combine several loans or credit card balances into one monthly payment. There are several methods an individual can use to accomplish this such as: Balance transfers to a credit card with a lower interest rate Taking out a home equity loan Using a...
The idea of getting a debt consolidation loan can seem like a good one. You combine all those pesky bills from separate lenders...
The idea of getting a debt consolidation loan can seem like a good one. You combine all those pesky bills from separate lenders into one bill, making only one automatic payment per month that may be smaller than the total of your current bills. It seems the perfect solution to debt problems. It could be. However, you may want to take heed of some caveats from financial experts before jumping on the consolidation bandwagon. Here are some tips to help you determine if a consolidation loan is right for you. Things to Consider Before Taking a Debt Consolidation...