If you have been in the market recently looking for several types of financing for new and new businesses, you might be a little frustrated now.
The problem is: banks and most other non-bank or private lenders do not lend money to start a business. That’s how it is.
They claim that the risk is too high and the regulator or investor agrees with them.
In fact, very few businesses last more than three to five years – typical loan terms for standard business loans.
But, just like many businesses before you, there are ways to finance your new start-up:
First – always see personal assets or personal means. Now, I know that you don’t want to hear this but if you don’t have other choices and you really believe in your business – then why not use your own assets or cash to get the business from the ground and make money?
You want a bank or lender to risk you but you will not take risks to yourself – it seems unfair.
Plus, I can guarantee you this: If you have your own assets with your risk of working harder and longer to ensure your business is successful (which is the final destination).
Second – means another bootstrap. There are many ways to photograph your business other than using your own personal funds or assets. You might look at:
Crowd funding – although this might not give a large amount of money, it might provide enough to start. After starting, other financing roads will start open.
Friends and family loans and your family know you are the best and if you can’t sell business concepts and benefits for them then you will never be able to sell it to pay consumers. Even if your friends and family cannot or will not invest in you, they may know other people who will – you just need to ask.
Micro Credit Lenders – Supported by SBA, this lender provides more than just the amount of capital – usually up to $ 35,000 with an average loan to around $ 13,500 – they also provide suggestions and guidelines to help you manage and grow your operations.
Third – look at partners or investors. If your business concept is not in the big market, it has high and rapid growth potential or has many exclusive assets, then you have to look locally. Exit and network in your community for other business owners or local investors.
You will be surprised by how many local business owners or retirees who only want to give back to their community and can provide more than capital but can open many other doors to you and your business. You just have to get out and talk to everyone who will listen. And, don’t be afraid to ask. If you don’t ask, you will never get what you want!
Even though you might hear about other people’s business owners who land some types of bank debt or professional investment to start their business; Also know that there must be some tremendous circumstances or reasons for it – like their uncle becomes President of the National Bank or as aid to famous family members or only that they have a source of external income that qualifies for their loans.
The point is that banks and other lenders do not lend to start a business.
In your early days, you really have to do it myself. But, make a challenge. Make one of your goals ultimately qualify for coveted business loans. It will not only help you manage your new business financially better (store items such as cash flow, collateral ratio, credit and debt in mind) but, when you are approved for your business loan, it will really tell you that your business has made it to the next level and on the right path for further success.
A true entrepreneur does not see failure to secure financing outside as a fatal obstacle to start their new business but, in a focus on increasing long-term potential that can be given business, will easily utilize these three steps and other self-f