Starting a business requires financing. Today there may be as many funding sources as ever, yet finding the money needed to start or even expand a business can be tricky. Our roundup of news and tips should help all entrepreneurs navigate the complicated world of small business financing and end up with a better understanding of what their businesses need. Enjoy!
Finding the right financing for your business. Not every kind of financing may be right for your small business. In fact, when it comes to funding of small businesses, one size definitely does not fit all. With changing times, it’s important to look for new opportunities. Small Business Trends
Lending caps are unfair to small business. If you’re an entrepreneur, don’t expect to raise money for your startup or expansion through traditional means. This post suggests new lending caps are stacked against the little guy. Newsmax
What investment and horse racing have in common. If you’ve never before heard the expression “betting on the jockey, not the horse,” you may want to check out a post about what is potentially another very important source of small business funding. Startup Professionals Musings
Four ways to fund your business without banks. As we’ve already mentioned, bank loans aren’t the only choice for funding a small business startup. Many options exist, but all require a good business strategy to make them effective. Just Retweet
Reaching out to family and friends. They’re an important source of emotional support and security, but in many cases they can also provide financial support. This support has become a common source of startup funds for many businesses. The Frugal Entrepreneur
Thinking about crowdsourcing? Here’s an infographic explaining what it is (excerpt below). SalesChase.com
More Financing Possibilities
Funding your home business (Infographic). Do you run a home business? Another useful graphic with data drawn from a variety of sources gives us a look at funding for a kind of business some may consider low budget. Yes, home-based businesses need funding too. SalesChase.com
Bootstrapping provides another funding option. Small businesses have long been utilizing another form of startup funding, one without need for bank lending or investors. Consider the bootstrapping option when starting your small business and reduce your overhead. Chicago Tribune
Yet More Funding Sources
Financing for business export debated. There’s a kind of business financing that’s rarely been talked about … until recently. And, yes, it involves small businesses as well. Financing for business export, large and small, is critical, experts say, but it has recently become embroiled in debate. Bloomberg Businessweek
This SBA loan program needs to be fixed, some say. It’s called the “504” program and it helps businesses acquire commercial property. But problems during the economic downturn required taxpayer subsidies, prompting criticism. Here’s one suggestion for an overhaul. Huffington Post
Credit unions offer another option. Small businesses are turning to this funding source as the U.S. Senate debates a plan that would make these lenders more competitive with other institutions. Crain’s New York Business
For the latest, follow us on Google News.
Crowd funding takes advantage of the social nature of the crowd and not only allows you to get money from but also as your crowd spreads the word about your needs, it will essentially also be spreading the word about your business. That’s why it’s becoming so popular, especially with the boom in social marketing.
Great Round up! I have always been a fan of crowdfunding and reaching out to your family, friend, and acquaintances for help financing my small businesses.
Another source of small business loans is through local economic development programs. These are typically underutilized programs funded by SBA, USDA, EDA, HUD, etc for creating and retaining jobs for the local community. These loans don’t typically go through the same credit process as a bank since they have a double bottom line of return on funds and job creation.
Adam Gottlieb @ The Frugal Entrepreneur
This is a very good point. But, small business owners should be aware that in some cases, such as SBA-backed lending, there may be a lot of paper work to go through and a long wait period.
Iv’e compiled several lists of online resources that can help small biz owners and entrepreneurs locate these local programs. You can find most of them here: http://frugalentrepreneur.com/links-to-free-online-small-business-resources/