Articles from EricWelke.com Quick Financing Options for your Home Business by Eric Welke
It’s important for a business owner to have several financing options available. These can be useful when an unexpected opportunity arises, especially when you can potentially increase your earnings with the added cash. If you’re business is growing and need some financing quickly, you might want to consider the following options: 1. Investors – If a loan is something you want to avoid, you can let people own a piece of your business in exchange for some help with costs and capitalization. You will have to let someone else into your operations and split the earnings. 2. Friends and family – If you’ve got a good relationship with your family, you can probably get them involved in the business as investors or get an outright loan from them. It can even be a long term and 0% interest loan; however you’ll probably have to put up with some interference unless they trust you enough to let you do everything independently. 3. Selling your existing assets – Check your existing properties to see if you have some that you don’t need or aren’t being used. Sell or mortgage them to get extra cash you can use for your business. Be sure to avoid selling items that maybe usable for your existing business in the future. Selling your used car might not be a good idea if you plan on using it for your business. 4. Bank or Credit Union Loans – This is the most popular method of getting financing. You’ll need to have complete documentation and a convincing business plan. A good track record and something you can use for collateral
can help get your request approved, but you’ll need some time to prepare and that might not be possible if you need cash immediately. Credit Cards – Maxing out your card can be risky and you can get stuck with a high interest rate loan. However, they can be useful for short term loans which you can use to replenish inventory to take advantage of favorable prices. Micro Financing – are very small loans typically extended to small businesses. They’re not as strict as large financing institutions and may extend loans to business owners that have a verifiable credit history, lack collateral, or even steady employment. The loan amounts maybe too small for your needs, but it can be useful if you want additional funds aside from your other available financing options. Credit with your Supplier – If you have an excellent relationship with your supplier you can get products without having to pay cash on delivery. You can request that you get installment terms for the payment. This allows you to use your existing funds for other needs. Customers – You might be able to get financing from customers who are willing to pay for advance orders. You need to have product with consistently high demand and a solid business plan.
If you rely heavily on quick financing, maintaining a very good relationship with your creditors is a must. This extends beyond just paying on time, although that is the most basic requirement. You need to have good rapport with them and be willing to share how you plan to use the funds you borrowed. You need to build a high level of trust and give them confidence in your entrepreneurial skills.
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Originally posted at: http://ericwelke.com/quick-financing-ideas-for-your-homebusiness/
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