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Tuesday, January 5, 2010

How Do I Obtain Capital To Invest In My Business Start Up?

Summary:
You’ll almost certainly need to raise money to start up your company, unless you already have sufficient capital yourself. The typical costs of starting up are in obtaining premises, manufacturing your product if you have one, buying materials, stock or equipment, marketing and fees for external consultancy such as legal help, accountancy etc. Then when you’re off the ground, you’ll need working capital to keep you afloat in the gaps between paying your own invoices and recei...



You’ll almost certainly need to raise money to start up your company, unless you already have sufficient capital yourself. The typical costs of starting up are in obtaining premises, manufacturing your product if you have one, buying materials, stock or equipment, marketing and fees for external consultancy such as legal help, accountancy etc. Then when you’re off the ground, you’ll need working capital to keep you afloat in the gaps between paying your own invoices and receiving payment from customer invoices.

Again, your business plan is essential at this stage of setting up your business. In it you will already have scoped out what your money needs are and how you plan to raise the capital, and you’ll be using it to persuade potential investors and lenders of the benefits of funding your company. Your financial calculations in your business plan therefore need to be thorough and accurate and presented with confidence.

Everyone expects that they’ll be able to stick to their plans and only need to borrow the absolute minimum, but more often than not something unexpected crops up to throw a spanner in the works. It therefore makes good business sense to include a contingency element in the amount you request. It’s better to do that now and have the extra cash as a safeguard than it is to have to return to your lender or investor not far down the line to ask for more money. If it wasn’t in the original plan they are likely to be concerned about your financial ability and your request may be rejected.

How much money should you request? This question worries all start-up business owners. You want to make sure you have enough to keep you going without struggling, but how much will your investors or lenders be prepared to give? Most experts would advise that you should pitch somewhere in the middle – don’t leave yourself short by requesting the minimum, but at the same time don’t be greedy (and lazy) in asking for too much. You want to keep costs to a minimum and invest your money wisely in your company, while still having the security of a little extra for backup if required. What you borrow should give you a realistic challenge for your business but should not be too risky. And back up your calculation with evidence in your business plan – it has to be credible.

People raise money for their company in many different ways, not always from professional business investors or high street banks. How you raise your capital will depend on your business needs and your own circumstances. Here’s some information on various different sources of funding.

Your own money – if you have enough cash to spare, putting up your own money for the business means you don’t have to be in debt to anyone. It will also give you full freedom over the running of your company as you won’t be responsible to any other interested parties. On the other hand, you’re risking a lot personally by investing your own cash and you could lose it all – and not just your business, but perhaps also your home if you obtained the money by taking out a secured loan or increased your mortgage, for example. You should also be aware that personal borrowing rates often have much higher interest repayment rates than business deals.

People you know – if they have anything to spare, family and friends are often more willing to give you cash than external lenders or investors. Again, though, there is a high level of personal risk, both for your family or friends who could lose money, and for you – it can cause relationship tensions. If you do take money from family or friends, treat it as a formal business arrangement as you would with external funding and agree clear terms and conditions. You want to protect both your interests and ensure that there are no misunderstandings.

The bank – high street lenders usually have a variety of different packages and there’s usually something to meet everyone’s requirements. You’ll have to do a sales pitch to get your money though, and depending on financial circumstances you might also be required to find a guarantor or provide some sort of security. Don’t just go to your own bank – look around for a good deal and do your pitch to various lenders. If nothing else, it will give you good practice! If you think you might have more of a chance of obtaining money from your own bank where you already have a strong relationship and good financial history, then don’t put it first on your list of visits – present your case to a few different lenders first to hone your presentation and persuasion skills to a tee! Even if you can’t find a lender to give you money, there is a government programme that may be able to help. The Department of Trade and Industry offers a Small Firms Loan Guarantee, in which it offers three quarters of the borrowing amount to the lender as a security guarantee. In return, you must pay an annual fee (which will be a small percentage of the remaining loan amount) to the Department of Trade and Industry. Up to quarter of a million pounds can be borrowed over a maximum 10-year period.

Outside investors – often referred to as ‘business angels’, private investors are rich professionals, often successful entrepreneurs themselves, who are able to offer a great deal of capital in return for an expected large profit and dividends when the company starts to make money. The advantage of obtaining finance from an investor rather than a lender is that they will not expect any financial returns until your business is turning a profit. Also, as successful business owners themselves, they can be a valuable source of advice to guide you in the right direction with your company. A combination of investment and lending might be a good option. Your business will seem a much more attractive and secure prospect to lenders if you already have a sum of capital to back it up. Investors will no doubt have a level of influence and decision-making power in your company, though. Most will want to be kept informed of what is going on – they will want to protect and develop their investment, of course, so you will have a responsibility to them. Also, when you start to turn a profit, it will be divided among everyone who has invested so you won’t get the full whack. Finally, you’ll need to put forward a very good business case to attract an investor – these are very wise, shrewd and experienced entrepreneurs.

Government schemes – there’s a whole raft of options available to small business owners from the government and local authorities in the form of low-cost loans and grants – in fact far too many to mention here. Your local business enterprise centre, chamber of commerce or local council will be able to advise on what options are available for your type of business. The loans are usually offered at very reasonable rates and grants are of course non-repayable (although competition can be tough). Such incentives are often given to certain types of businesses in certain industries located in certain areas, particularly in areas that are being regenerated and in fields such as science, research or engineering.

In conclusion, the key message is that however you get the money you need for your business, you’ll need a very strong business plan – and you’ll need to practise your skills of presenting to ensure you make a good impression and a convincing case.

The presentation of the document itself is also important. Keep it clean, crisp and sharp. Use a business-like typeface, use colours sparingly and use spreadsheets to create neat graphics. Have someone else look over it for you when it’s done to check for mistakes. Print it on good paper and hold it together in a presentation folder or comb binding.

Don’t just plan to read out your business plan – people can do that for themselves. Turn it into a slick presentation with a strong argument for your case. Write down what you want to say and rehearse it several times – in front of a mirror at first and then to family or friends. Confidence is key and this will come with practice. Ensure that you know the details of your plan inside out, including the figures. You don’t want the facts to trip you up. It’s also a good idea to consider what questions investors or lenders might ask and how you can answer them confidently and convincingly.




_______________________________________________________
Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website
http://www.business-idea-grants.com/

L. Edward helps people to start a business, get grant money, build, market online at http://www.HomeBusinessIT.com L. Edward Recommends As Seen on FOX NEWS TV , A Work At Home Program that is changeing peoples lives, visit Cash Monthly Lifetime

Learn where to find money for funding starting a business, grant sources, grant programs. Our onsite free information will walk you through step by step setting up a business as research required , business types, business plan, start up costs, business liscence, taxes, funding. Grant Programs and sources include Government Grant Money as Federal grants, State grants , Local grants, Federal assistance, grants.gov and Development Offices. Learn the Business Grants Step Management and 'know how' to spend your time, proposed business clarity, know your business needs, know how to avoid sccams. Learn online step by step How To Write A Grant Application including how to write a business proposal, the summary, grant justification, project description, budge, qualification proof, outsourcing if needed.

Get A Free Legitimate Home Based Business Report , Internet Business Ideas and Free Internet Business Library with Online Business Ideas, Free Training Newsletter at Leons Home Business Website
http://www.homebusinessit.com/

Leon Edward Helps people to start, grow legitimate Internet Based home business income with business structure, small business legal service information, step by step guides and online business training articles, reviews, marketing blog and newsletter... with legitimate business ideas and opportunities as top BBB rated home businesses, turnkey internet business, a 3 steps to internet income business proven mlms, even a start free work at home program

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Monday, January 4, 2010

How To Get Money Fo A Business Start Up

When you first start a company it's almost a guarantee you need to raise money. Unless of course you have a sufficient amount of capital, then you can focus on other areas. This money pertains to obtaining a business location, manufacturing the product, buying materials, stock and equipment, marketing and advertising, legal help, financial records, and various other parts to owning your own business. Then of course when you get off the ground, you need more money to stay afloat during the infancy stages.

It all revolves around your business plan, which is essential to setting up a company. It will give you an inside look of what your money needs are, and the strategies you will use to raise the capital. It's possible you will use this to persuade potential investors, or even get some type of funding for your company. This means it's important to have your financial calculations in check before you start.

Unfortunately most people believe they can stick to their plans and only borrow the absolute minimum. The only problem is many things will arise when you least expect it, which can cause several issues. So it is in your best interest to include a contingency element in your financial request. If you can do that now and have some safeguard money set up in your original plan, your investors won't be as concerned. However, if this is the move you make later on down the road it's most likely that your request will be rejected.

Are you wondering how much money you should request? It's something that all start up business owners worry about in the beginning. The recommendation here is to meet them somewhere in the middle. You don't want to undercut your own financial needs, but at the same time you don't want to look as though you are too greedy. When you do get your investment money, just make sure you keep your costs to a minimum and invest the money wisely. This will allow you to hold back some for security reasons if you need to stay afloat. The most important thing is that your calculations in the business plan will have to be credible.

We all raise money differently and sometimes not from professional business investors or high street banks. The way you decide to raise capital will depend on your particular circumstances. If you need help, here's some information on a few different sources of funding.

Your Own Money- even though many people won't be able to do this, it's one of the least stressful situations to starting up a business. It means you don't have to worry about owing anyone money, but just making sure the business is successful. When you're not responsible to any other interested parties, you have more freedom over what you can do. On the flip side of things, you're putting up a lot of personal risk. What it comes down to is you could actually lose everything. Keep in mind you may have taken out a secured loan which increased your mortgage and various other parts of your personal life. Plus, personal borrowing rates usually have a much higher interest repayment rate.

People You Know- if you don't have your own money and need to go elsewhere, family and friends are great place to start. Often times they will be more willing to give you money then external lenders or investors. Keep in mind that still involves a high level of personal risk, and added stress to you and your family or friends. The best thing to do is to treat it as a formal business arrangement and make sure the terms and conditions are clear. This way you protect both interests so that there are no misunderstandings between all parties.

The Bank- once you've passed the first few thresholds it's time to consider the bank. If you look at all the high street lenders you can find a variety of different packages in which one of them will meet your needs. Unfortunately, if you take this route you're going to have to provide a sales pitch in order to get your money. Then of course you also have to consider your personal financial circumstances, which may mean you need to provide some sort of security.

Don't Just Go to your Own Bank- even though the first thought is to only go to your bank, it's possible another one will be willing to lend you money. In the beginning just taking this route will give you practice on the routine. The idea here is to go to other banks first if you feel as though you have a strong relationship and get financial history with your own bank. You may think this doesn't make sense, but going elsewhere first will allow you to build a perfect presentation and develop your own persuasive skills for when you do give it to your bank. If things don't go your way, it is possible a government program is out there ready to help you. A great example of this is the Department of Trade and Industry, which offers a Small Firms Guarantee. In this scenario there is a 75% borrowing amount to the lender as a security guarantee. On your side of things you have to pay an annual fee to the Department of Trade and Industry. The cost can be up to a quarter of 1,000,000 pounds over a ten-year period.

Outside Investors- sometimes you have to go to the private investors if you want to build a successful business. These are rich professionals who offer a huge capital for a large profit and dividends when the company begins to make money. The best part about outside investors is that they do not expect money until you start making it. Another important part to outside investors is they can offer viable guidance to push you in the right direction. Sometimes this is a great option for many individuals. Often times businesses taking this route will look much more attractive if you have capital to back it up. Keep in mind though the investors will have a level of influence and decision-making within your company. So even though your company will be protected, you won't have the same kind of freedom like many of the other options above. Plus, when you turn a profit it will be divided amongst everyone who has invested in your company. This means it may take longer for you to actually start earning a personal profit. In order to attract these individuals you have to come up with a good business case to attract them.

Government Schemes- more and more today we hear about all the various government schemes that can help you create capital for your business. You'll find low-cost loans and grants out there, but you eventually have to do your research to find the best places out there. It all starts with your local business enterprise Center, the Chamber of Commerce, or some local council they can give you the advice you need. These loans have reasonable rates, and if you get a grant you won't have to pay it back. Keep in mind these incentives are given to certain types of businesses in more specific areas. Hopefully you can find one that is specifically designed for your business if you take this route.

What it comes down to is that no matter which one you choose you will have to have a very strong business plan. Most importantly, you will have to practice your skills and provide a convincing case to anyone you want to invest in your company.

We recommend keeping it clean, crisp and sharp. It's important to use a business-like typeface, as well as spreadsheets to create appealing graphics. Before you jump into an interview process, we also suggest having someone look it over and check for mistakes. In order to look professional you have to print it on good paper and hold it together through the presentation folder or some sort of binding.

Don't Just Plan to Read Out your Business Plan- one thing to understand is that you have to do more than read your proposal aloud. You want to provide a slick presentation that offers a strong argument for your case. The best way to do this is to write it down and go over it several times in front of a mirror. If you get nervous in front of people, ask family and friends to watch your presentation. Tell them to be a critic so you can polish it up to be perfect when you sit in front of a potential investor. It's all about confidence and in order to get this you have to practice. Once you're able to understand your plan inside and out, which includes the figures, you'll be able to stand tall with your argument. Last but not least, make sure you consider the types of questions you're investors or lenders will ask so that you can be convincing with your answers. If you do all these things you will be able to get the capital you need to fund your new business.



You'll almost certainly need to raise money to start up your company, unless you already have sufficient capital yourself. The typical costs of starting up are in obtaining premises, manufacturing your product if you have one, buying materials, stock or equipment, marketing and fees for external consultancy such as legal help, accountancy etc. Then when you're off the ground, you'll need working capital to keep you afloat in the gaps between paying your own invoices and receiving payment from customer invoices.

Again, your business plan is essential at this stage of setting up your business. In it you will already have scoped out what your money needs are and how you plan to raise the capital, and you'll be using it to persuade potential investors and lenders of the benefits of funding your company. Your financial calculations in your business plan therefore need to be thorough and accurate and presented with confidence.

Everyone expects that they'll be able to stick to their plans and only need to borrow the absolute minimum, but more often than not something unexpected crops up to throw a spanner in the works. It therefore makes good business sense to include a contingency element in the amount you request. It's better to do that now and have the extra cash as a safeguard than it is to have to return to your lender or investor not far down the line to ask for more money. If it wasn't in the original plan they are likely to be concerned about your financial ability and your request may be rejected.

How much money should you request? This question worries all start-up business owners. You want to make sure you have enough to keep you going without struggling, but how much will your investors or lenders be prepared to give? Most experts would advise that you should pitch somewhere in the middle - don't leave yourself short by requesting the minimum, but at the same time don't be greedy (and lazy) in asking for too much. You want to keep costs to a minimum and invest your money wisely in your company, while still having the security of a little extra for backup if required. What you borrow should give you a realistic challenge for your business but should not be too risky. And back up your calculation with evidence in your business plan - it has to be credible.

People raise money for their company in many different ways, not always from professional business investors or high street banks. How you raise your capital will depend on your business needs and your own circumstances. Here's some information on various different sources of funding.

Your own money - if you have enough cash to spare, putting up your own money for the business means you don't have to be in debt to anyone. It will also give you full freedom over the running of your company as you won't be responsible to any other interested parties. On the other hand, you're risking a lot personally by investing your own cash and you could lose it all - and not just your business, but perhaps also your home if you obtained the money by taking out a secured loan or increased your mortgage, for example. You should also be aware that personal borrowing rates often have much higher interest repayment rates than business deals.

People you know - if they have anything to spare, family and friends are often more willing to give you cash than external lenders or investors. Again, though, there is a high level of personal risk, both for your family or friends who could lose money, and for you - it can cause relationship tensions. If you do take money from family or friends, treat it as a formal business arrangement as you would with external funding and agree clear terms and conditions. You want to protect both your interests and ensure that there are no misunderstandings.

The bank - high street lenders usually have a variety of different packages and there's usually something to meet everyone's requirements. You'll have to do a sales pitch to get your money though, and depending on financial circumstances you might also be required to find a guarantor or provide some sort of security. Don't just go to your own bank - look around for a good deal and do your pitch to various lenders. If nothing else, it will give you good practice! If you think you might have more of a chance of obtaining money from your own bank where you already have a strong relationship and good financial history, then don't put it first on your list of visits - present your case to a few different lenders first to hone your presentation and persuasion skills to a tee! Even if you can't find a lender to give you money, there is a government programme that may be able to help. The Department of Trade and Industry offers a Small Firms Loan Guarantee, in which it offers three quarters of the borrowing amount to the lender as a security guarantee. In return, you must pay an annual fee (which will be a small percentage of the remaining loan amount) to the Department of Trade and Industry. Up to quarter of a million pounds can be borrowed over a maximum 10-year period.

Outside investors - often referred to as 'business angels', private investors are rich professionals, often successful entrepreneurs themselves, who are able to offer a great deal of capital in return for an expected large profit and dividends when the company starts to make money. The advantage of obtaining finance from an investor rather than a lender is that they will not expect any financial returns until your business is turning a profit. Also, as successful business owners themselves, they can be a valuable source of advice to guide you in the right direction with your company. A combination of investment and lending might be a good option. Your business will seem a much more attractive and secure prospect to lenders if you already have a sum of capital to back it up. Investors will no doubt have a level of influence and decision-making power in your company, though. Most will want to be kept informed of what is going on - they will want to protect and develop their investment, of course, so you will have a responsibility to them. Also, when you start to turn a profit, it will be divided among everyone who has invested so you won't get the full whack. Finally, you'll need to put forward a very good business case to attract an investor - these are very wise, shrewd and experienced entrepreneurs.

Government schemes - there's a whole raft of options available to small business owners from the government and local authorities in the form of low-cost loans and grants - in fact far too many to mention here. Your local business enterprise centre, chamber of commerce or local council will be able to advise on what options are available for your type of business. The loans are usually offered at very reasonable rates and grants are of course non-repayable (although competition can be tough). Such incentives are often given to certain types of businesses in certain industries located in certain areas, particularly in areas that are being regenerated and in fields such as science, research or engineering.

In conclusion, the key message is that however you get the money you need for your business, you'll need a very strong business plan - and you'll need to practise your skills of presenting to ensure you make a good impression and a convincing case.

The presentation of the document itself is also important. Keep it clean, crisp and sharp. Use a business-like typeface, use colours sparingly and use spreadsheets to create neat graphics. Have someone else look over it for you when it's done to check for mistakes. Print it on good paper and hold it together in a presentation folder or comb binding.

Don't just plan to read out your business plan - people can do that for themselves. Turn it into a slick presentation with a strong argument for your case. Write down what you want to say and rehearse it several times - in front of a mirror at first and then to family or friends. Confidence is key and this will come with practice. Ensure that you know the details of your plan inside out, including the figures. You don't want the facts to trip you up. It's also a good idea to consider what questions investors or lenders might ask and how you can answer them confidently and convincingly.

_______________________________________________________



Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website
http://www.business-idea-grants.com/

L. Edward helps people to start a business, get grant money, build, market online at http://www.HomeBusinessIT.com L. Edward Recommends As Seen on FOX NEWS TV , A Work At Home Program that is changeing peoples lives, visit Cash Monthly Lifetime

Learn where to find money for funding starting a business, grant sources, grant programs. Our onsite free information will walk you through step by step setting up a business as research required , business types, business plan, start up costs, business liscence, taxes, funding. Grant Programs and sources include Government Grant Money as Federal grants, State grants , Local grants, Federal assistance, grants.gov and Development Offices. Learn the Business Grants Step Management and 'know how' to spend your time, proposed business clarity, know your business needs, know how to avoid sccams. Learn online step by step How To Write A Grant Application including how to write a business proposal, the summary, grant justification, project description, budge, qualification proof, outsourcing if needed.

Get A Free Legitimate Home Based Business Report , Internet Business Ideas and Free Internet Business Library with Online Business Ideas, Free Training Newsletter at Leons Home Business Website
http://www.homebusinessit.com/

Leon Edward Helps people to start, grow legitimate Internet Based home business income with business structure, small business legal service information, step by step guides and online business training articles, reviews, marketing blog and newsletter... with legitimate business ideas and opportunities as top BBB rated home businesses, turnkey internet business, a 3 steps to internet income business proven mlms, even a start free work at home program

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Thursday, December 31, 2009

Secret To Acquiring Business Grants

Summary:
Names are also necessary. In order to make the proposal more formal when presented, you must do your best to include the names of the people who are the key staff in assisting the proposal of your chosen project. You can also include names of people in the staff who helped you prepare your objective proposal, as well as the cost proposal.

In your proposal, the research that had been allotted to come up with the finished product must be evident. Government agency will prett...


Names are also necessary. In order to make the proposal more formal when presented, you must do your best to include the names of the people who are the key staff in assisting the proposal of your chosen project. You can also include names of people in the staff who helped you prepare your objective proposal, as well as the cost proposal.

In your proposal, the research that had been allotted to come up with the finished product must be evident. Government agency will pretty much determine the effort of the possible grantee in his proposal. Look at it like the term papers you used to submit to your college professors, a proposal is pretty much like that. With what you have written there, the government agency will get an idea on the commitment and dedication you have on the project.

Business Grants
The Secret to Acquiring Business Grants

Business grants could be one of the most important financial tools that nearly all businesses would need. They may not be the single most significant support businesses could have, but they can get definitely help you start the business right. Up to $5,000 to convert your vehicle from gas to an alternate fuel. US Government Grant for USA Citizens

Business grants refer to a particular amount of money that is being granted by the government to a particular business. Some people may have thought of it as a “free financial support” from the government, but they are not. That is because there is an equivalent effort, time, and sweat entailed when requesting for grants. Guaranteed US Government Grant for USA Citizens at http://www.trustedreviews.info/money/usm/index.html

Moreover, not all businesses can avail of business grants. Even if the government provides business grants to support businesses, certain qualifications are required prior to the approval of the business grants.

Primarily, your business should be a not-for-profit organization or it should include an expansion of a new knowledge or technology. If your business does not fall under these categories, you are not qualified for a business grant.



_______________________________________________________
Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website
http://www.business-idea-grants.com/

L. Edward helps people to start a business, get grant money, build, market online at http://www.HomeBusinessIT.com L. Edward Recommends As Seen on FOX NEWS TV , A Work At Home Program that is changeing peoples lives, visit Cash Monthly Lifetime

Learn where to find money for funding starting a business, grant sources, grant programs. Our onsite free information will walk you through step by step setting up a business as research required , business types, business plan, start up costs, business liscence, taxes, funding. Grant Programs and sources include Government Grant Money as Federal grants, State grants , Local grants, Federal assistance, grants.gov and Development Offices. Learn the Business Grants Step Management and 'know how' to spend your time, proposed business clarity, know your business needs, know how to avoid sccams. Learn online step by step How To Write A Grant Application including how to write a business proposal, the summary, grant justification, project description, budge, qualification proof, outsourcing if needed.

Get A Free Legitimate Home Based Business Report , Internet Business Ideas and Free Internet Business Library with Online Business Ideas, Free Training Newsletter at Leons Home Business Website
http://www.homebusinessit.com/

Leon Edward Helps people to start, grow legitimate Internet Based home business income with business structure, small business legal service information, step by step guides and online business training articles, reviews, marketing blog and newsletter... with legitimate business ideas and opportunities as top BBB rated home businesses, turnkey internet business, a 3 steps to internet income business proven mlms, even a start free work at home program

Tuesday, November 24, 2009

Small business loans - Stable financial back up

Small business loans - Stable financial back up by Robert Langdon

Although resorting to debts from lenders had always been considered to be a negative feature, yet it becomes very essential during financial inflexibility. Unlike earlier days, when people followed money lenders for emergency as well as long term finances, today funding borrowings have become much more legal and controlled. Various banks and lenders have come up to cater to the monetary needs of the people. Other than short term loans, long term borrowings have become very admired among people, in order, to expand their firm or buy special equipments or even for overhaul reasons.

One of the friendliest loans for businessmen is Small Business Loan for further expansion of the organization. Sometimes, it is quite hard for the people to collect huge funds for the sake of their firm. In such circumstances, they look forward for small business loans. These loans are of utmost importance for the stable growth and work flow of the firm. Though business is the best way to earn money, yet it linked up with various risk factors entangled with it and requires stable financial back up.

Small business loans are quite helpful to start off a new firm, a small business loan is must, in order to invest for its purchasing computer hardware, renovation, steel automobile etc. One of the most advantageous features of this loan is that it can be used for anything in the business. In fact, there are no limitations from the lenders for the utilization of such borrowings. With this loan, you can get an amount ranging from £1,000 to £500,000. Collateral matters on the amount taken and the position of the borrower.

In fact, Small business loans are considered to be one of the most convenient modes of finance gathering because of its loan protection policy. This policy acts as a back up plan for the borrower as it helps to cover the amount in case of emergency or accidental situations like sickness, accidents etc. One of the most stunning facts is that it has an extended repayment system and borrower can easily extends repayment period to a limit of 30 years. This decreases the repayment pressure of the borrowers and also saves them from the bad credit history tag.

About the Author

Robert Langdon is expert in the field of finance. He is working as financial consultant for Small Personal loans. To find small business loans, business loans and woman business loans visit http://www.smallpersonalloans.net/


________________________________________________
Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website
http://www.business-idea-grants.com/

L. Edward helps people to start a business, get grant money, build, market online at http://www.HomeBusinessIT.com L. Edward Recommends As Seen on FOX NEWS TV , A Work At Home Program that is changeing peoples lives, visit Cash Monthly Lifetime

Learn where to find money for funding starting a business, grant sources, grant programs. Our onsite free information will walk you through step by step setting up a business as research required , business types, business plan, start up costs, business liscence, taxes, funding. Grant Programs and sources include Government Grant Money as Federal grants, State grants , Local grants, Federal assistance, grants.gov and Development Offices. Learn the Business Grants Step Management and 'know how' to spend your time, proposed business clarity, know your business needs, know how to avoid sccams. Learn online step by step How To Write A Grant Application including how to write a business proposal, the summary, grant justification, project description, budge, qualification proof, outsourcing if needed.

Get A Free Legitimate Home Based Business Report , Internet Business Ideas and Free Internet Business Library with Online Business Ideas, Free Training Newsletter at Leons Home Business Website
http://www.homebusinessit.com/

Leon Edward Helps people to start, grow legitimate Internet Based home business income with business structure, small business legal service information, step by step guides and online business training articles, reviews, marketing blog and newsletter... with legitimate business ideas and opportunities as top BBB rated home businesses, turnkey internet business, a 3 steps to internet income business proven mlms, even a start free work at home program

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Friday, October 9, 2009

Business Startup Loans and Small Business Funding for the Self Employed

By Paul Kopp

New business startup loans and small business funding can be very difficult to acquire unless you find a funding source that will be creative. There are many different ways a home based business can get various types of funding as well.. What most self employed individuals forget is that they may be sitting on untapped credit lines and assets that can help them get the financing necessary for their small business.

Many commercial banks will not even look at the new business startup or small businesses unless they have plenty of money sitting in a bank account, a long business tract record and a fat balance sheet. Unfortunately, most of us may not have much cash laying around. That is why most small businesses are looking for additional capital and need funding sources that will think outside the box and look at many different types of financing to fit their business needs.

Here are just a sampling of the types of small businesses that can get financing:

  • Retail
  • Restaurant
  • Doctors
  • Dentists
  • Lawyers
  • Manufacturing
  • Industrial
  • Wholesale
  • Construction
  • Retail Apparel
  • Service Contracts
  • Contractors
  • Sub Contractors

Even if your business does not fit into the above categories there may be funding for you. In my article; Small Business Funding and Business Startup Loans I explain the many different types of small business financing programs available. There is even a contact form to get additional information for your small business funding needs.

I was amazed at how difficult it was for new business startups to get financing. You either have to give half the business away to private investors or you would have to use your own money and risk everything that you worked so hard to get. However there are sources that will not suck the blood out of your great small business idea.

Some types of financing which are most overlooked or difficult to get:

  • New Business or Startup Loans
  • Equipment Leasing
  • Working Capital
  • Purchase Order Funding
  • Contract Funding
  • Accounts Receivable Factoring
  • Medical and Health Industry Loans
  • Debt Settlement and Restructuring
  • Commercial Mortgages

Bottom Line:

There are many ways for the small business owner to get more working capital, new equipment and extra lines of business credit without tapping into personal lines of credit. You do not always have to have stellar credit either. Do not over look the seen and unseen assets your business already has and the potential for future growth. When you know and understand the types of financing available to you then better business decisions can be made regarding your specific funding needs.

Paul Kopp is the Founder and CEO of Kopp Enterprises, Inc. Paul has been a Home Based Business owner for over 7 years. Currently he operates 2 online businesses and also is involved in numerous non internet related businesses. Paul created Home-Based-Business-Solutions.com to give quality information and resources to start and run a home based business smoothly and profitably. He covers all the topics from A-Z for home based businesses. This article and others can be found at his Business Resource Center.


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Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website
http://www.business-idea-grants.com/

L. Edward helps people to start a business, get grant money, build, market online at http://www.HomeBusinessIT.com L. Edward Recommends As Seen on FOX NEWS TV , A Work At Home Program that is changeing peoples lives, visit Cash Monthly Lifetime

Learn where to find money for funding starting a business, grant sources, grant programs. Our onsite free information will walk you through step by step setting up a business as research required , business types, business plan, start up costs, business liscence, taxes, funding. Grant Programs and sources include Government Grant Money as Federal grants, State grants , Local grants, Federal assistance, grants.gov and Development Offices. Learn the Business Grants Step Management and 'know how' to spend your time, proposed business clarity, know your business needs, know how to avoid sccams. Learn online step by step How To Write A Grant Application including how to write a business proposal, the summary, grant justification, project description, budge, qualification proof, outsourcing if needed.

Get A Free Legitimate Home Based Business Report , Internet Business Ideas and Free Internet Business Library with Online Business Ideas, Free Training Newsletter at Leons Home Business Website
http://www.homebusinessit.com/

Leon Edward Helps people to start, grow legitimate Internet Based home business income with business structure, small business legal service information, step by step guides and online business training articles, reviews, marketing blog and newsletter... with legitimate business ideas and opportunities as top BBB rated home businesses, turnkey internet business, a 3 steps to internet income business proven mlms, even a start free work at home program

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Monday, August 24, 2009

Now Your Business can Get Its Root with New Business Loans

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Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website
http://www.business-idea-grants.com/
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Article

By Michael Brian

Money matters a lot to embark a business. It waters a business to get its root. Without money, starting a business… it sounds unfeasible. Many of us desire of starting our own business, but cash crunch acts as a barrier to fulfill the desire. In this context, new business loans can be emphasized to solve the problem.

New business loans, the ultimate helping hand, are customized for those who are planning to start their own business but facing cash crisis. These loans can be used for various business related purposes like buying machines and equipments, vehicles, other resources that are mandatory to start up a new business.

Finding a lender to avail a new business loan is not so tough. Many lenders like banks, lending institutions, other credit unions offer loans to start a new business. Even, these days, online is also a good option to find out a new business loan. This process is the fastest and the simplest process. You need to click only the mouse and within a minimum time you can access various sites, offering new business loans.

Here, you need to know that at the time of applying for a new business loan, lenders will ask you to fill up an application form where you will have to mention a brief of your new business plan. Actually, with this, lenders want to check whether the business that the borrower wants to start up is sustainable or not.

However, two types of new business loans are available in loan market- secured and unsecured business loans. Like other secured loans, secured new business loans are available against a security. As security any kind of valuable property can be used. Since the presence of security covers the risk of lending money, thus borrowers can avail these loans at lower interest rate. But the main drawback of secured new business loan is the risk of collateral repossession. On the other hand, such kind of risk are absent with unsecured option, as these loans are available without any collateral. And due to absence of collateral, lenders charge high interest rate with these loans. Generally, with these loans, one can borrow anything between ₤ 5000 to ₤100000 where the repayment period varies from 3 to 25 years.

At last, borrowers are advised to take some initiative before applying for a new business loan. Do not stick to one lender, but it is necessary to wander around to get the best deal. Collect various quotes, terms and conditions of different lenders, compare them and then apply for the best deal. And needless to say that you should avoid any sort of deal with unauthorized lender.

Michael T. Brian is the author of this article. He is Masters in Business Administration and expert in finance. He writes about various finance related topics. To find Business loans, business start up loans, Secured business loans, New business loans, small business loan, flexible business loans visit http://www.find-business-loans.co.uk



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Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website
http://www.business-idea-grants.com/

L. Edward helps people to start a business, get grant money, build, market online at http://www.HomeBusinessIT.com L. Edward Recommends As Seen on FOX NEWS TV , A Work At Home Program that is changeing peoples lives, visit Cash Monthly Lifetime

Learn where to find money for funding starting a business, grant sources, grant programs. Our onsite free information will walk you through step by step setting up a business as research required , business types, business plan, start up costs, business liscence, taxes, funding. Grant Programs and sources include Government Grant Money as Federal grants, State grants , Local grants, Federal assistance, grants.gov and Development Offices. Learn the Business Grants Step Management and 'know how' to spend your time, proposed business clarity, know your business needs, know how to avoid sccams. Learn online step by step How To Write A Grant Application including how to write a business proposal, the summary, grant justification, project description, budge, qualification proof, outsourcing if needed.

Get A Free Legitimate Home Based Business Report , Internet Business Ideas and Free Internet Business Library with Online Business Ideas, Free Training Newsletter at Leons Home Business Website
http://www.homebusinessit.com/

Leon Edward Helps people to start, grow legitimate Internet Based home business income with business structure, small business legal service information, step by step guides and online business training articles, reviews, marketing blog and newsletter... with legitimate business ideas and opportunities as top BBB rated home businesses, turnkey internet business, a 3 steps to internet income business proven mlms, even a start free work at home program

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Saturday, August 22, 2009

Six Options for Financing Business Acquisitions by Tiffany Wright

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Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website
http://www.business-idea-grants.com/
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Article by Tiffany Wright

When it is time to arrange the financing for an acquisition, it is important to be creative. When seeking money to buy a company, you will notice that a number of community banks, typically big funders of certain acquisitions, are encountering difficulty due to their degraded residential (builders) loan portfolio. Creativity can make the difference between accessing capital or canceling the acquisition, especially now when credit markets are tighter.

Here are some options for financing acquisitions:

1. Owner financing / seller financing - Go to the seller first. Who is better prepared to finance the business than the person or company who owned it? They know the business better than anyone and are most familiar with its risks. In the current environment, you should be able to get 40-70% of the business financing via owner financing. You must convince the seller you are a good risk, just as you would have to convince a bank.

2. Supplier or vendor financing - The target company's suppliers and vendors are a good source of financing. Their business is likely to increase under your new ownership. (i.e., If you do not intend to grow the business, why would you buy it?) Leverage that growth in their business to negotiate for financing from them. If the target company has been a good customer, the supplier is knowledgeable about the business and will understand the inherent risks better than a typical bank. Note that if you are an existing business acquiring another business, you can pursue financing from your suppliers and vendors. The same reasons apply.

3. Mezzanine financing or private equity funding - Mezzanine and private equity funds that serve the small and medium markets raised large sums of money before the market meltdown. They therefore have money to spend and are looking for great opportunities. With fewer people and companies making acquisitions right now even though multiples are very low, now is a great time to obtain mezzanine financing. The target company typically will need revenue of $10 - $20 million and higher and EBITDA of $2 - 3 million and more to be interesting to a mezzanine or private equity fund. Why? These funds have to spend large amounts in a relatively short period of time (5-7 years) so they need larger deals.

4. Bank debt - If the target company has a lot of medium to long-term assets in addition to good cash flow and a strong profit margin, you should have relatively few problems finding bank financing. However, if you want to buy a service company which has a lot of receivables and other short term assets, you may encounter difficulty. Find a bank that has a history of financing the type of company you are buying. Also, talk to the seller's banker. If the seller has a strong banking relationship, the banker will know the business well, increasing the likelihood that that bank will provide financing in order to retain the relationship and the itinerant deposit accounts.

5. Receivables financing - If you find it difficult to obtain bank financing, pursue account receivables financing firms. They can provide term loans and lines of credits against the receivables. Although the interest rate will be higher, these firms are more familiar with receivables financing and thus often more comfortable with lending against receivables.

6. Pre-paid sales - Approach the target's customers and ask them to make a bulk purchase or pre-pay for several months' or a year's worth of products or services in exchange for a strong discount.

These are some acquisition funding options to stimulate your own creative thinking and approach. There are other alternatives, some of which may be unique to your particular business.


About the Author

Tiffany Wright is a turnaround consultant and small business advisor who has written several books and ebooks. She is the author of Help! I Need Money for My Business Now!!, an ebook with easy-to-follow examples, case studies, and templates that will lead you step-by-step through the process of raising capital for your business available at http://www.moneytogrowbusiness.com. She has helped companies raise over $31 Million in financing.


_______________________________________________________
Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , where to find start up business grants, sources, how best to fill out applications, grant management step by step tips, setting up a business steps at his website
http://www.business-idea-grants.com/

L. Edward helps people to start a business, get grant money, build, market online at http://www.HomeBusinessIT.com L. Edward Recommends As Seen on FOX NEWS TV , A Work At Home Program that is changeing peoples lives, visit Cash Monthly Lifetime

Learn where to find money for funding starting a business, grant sources, grant programs. Our onsite free information will walk you through step by step setting up a business as research required , business types, business plan, start up costs, business liscence, taxes, funding. Grant Programs and sources include Government Grant Money as Federal grants, State grants , Local grants, Federal assistance, grants.gov and Development Offices. Learn the Business Grants Step Management and 'know how' to spend your time, proposed business clarity, know your business needs, know how to avoid sccams. Learn online step by step How To Write A Grant Application including how to write a business proposal, the summary, grant justification, project description, budge, qualification proof, outsourcing if needed.

Get A Free Legitimate Home Based Business Report , Internet Business Ideas and Free Internet Business Library with Online Business Ideas, Free Training Newsletter at Leons Home Business Website
http://www.homebusinessit.com/

Leon Edward Helps people to start, grow legitimate Internet Based home business income with business structure, small business legal service information, step by step guides and online business training articles, reviews, marketing blog and newsletter... with legitimate business ideas and opportunities as top BBB rated home businesses, turnkey internet business, a 3 steps to internet income business proven mlms, even a start free work at home program

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