Small Business Loans - How to Get
Business Startup Money
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One of the
biggest challenges a startup business
entrepreneur faces is where the money
come from to start their business. Here are
a few ways you can get the money you need to
start your business.
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Business Loan Funding Ideas
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| Startup business loan options . . .
it's difficult to decide which path to take when you
want to start your business. Whether you're a woman
owned business looking for a loan or business
startup money, or an individual with a home business
wanting to sell your products on the Internet.
You'll want to calculate what your actual startup
costs will be, then add in the amount of spare cash
you'll want to have in reserve to cover your
personal expenses during your business startup
phase. Here are some of the most common ways most
entrepreneurs find money to start their business. |
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Start Your Business on a Part Time
Basis
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| Many entrepreneurs need a steady
source of income in order to meet their financial
obligations during the startup phase. You also have
to consider maintaining Health & Dental insurance
benefits, so starting your business as a part-time
venture is a good option. this way, you can keep
your steady job until your new business has a good
profit margin, and regular customers. |
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» Resource:
Business Loans We specialize in securing business
loans for companies that
need start up funding, money to expand, or working
capital for that next big
project. |
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Apply for an SBA Loan or
Government Business Grant
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| SBA business loans or government
small business loans and grants come in all shapes
and sizes. Learn about the different
business loans and grants available though the
Small Business Administration. |
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Pinch Pennies and Save
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| Look closely at your current monthly
expenses, and see how you might be able to cut back
on certain things in order to put money into savings
and invest in your business. In the beginning, you
may not be carrying the fanciest cell phone, but
you'll have what you need to function. I always go
back to a lyric from the Rolling Stones: 'You can't
always get what you want ... but you get what you
need'. A few nips and tucks to your everyday
lifestyle will save you $200 or more per month. Read
our suggestions of
ways you can trim your monthly expenses. |
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Home Equity Line of Credit
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| You may be able to apply for a home
equity line of credit. The amount of a home equity
line of credit will be determined by the value of
your home and the amount you still owe on the
principal. This option puts your home at risk. If
your business fails and you default on the loan,
you'll most likely lose your house. |
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Bank Business Loan
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You can apply for a business loan
from a bank. Confirm with each bank you plan to
pursue a loan from exactly what documents and
information they require. Most banks will ask you
for the following:
- purpose of the loan
- amount of owner investment
- income and expense projections
- business plan
- last three years financial statements (some banks
do not require) |
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Borrow From Friends or Family
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| Borrowing from family and friends
for your business startup should be treated like a
small business loan from a bank or an investor. You
have to take the loan seriously, and not push it to
the background just because it's your family and
friends lending the money. This type of business
loan should be your last choice. Why? Because more
often than not, lending and borrowing money between
family and friends will eventually cause problems.
Sometimes the money issues escalate to a level that
you'll wish you never took the money to begin with. |
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Get Additional Paid Work Hours
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| You can invest in your own small
business by getting an additional job or part-time
employment. It may take longer to accrue the money
you need for your new business by taking on a
part-time job, but you can put those extra paychecks
into savings until you have enough to fund your
business startup. |
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Start Your Business on a Part Time
Basis
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| Depending on the type of business
you want to start, if it's viable - start your
business from home and operate as a home-based
company. This way, you can take advantage of tax
deductions afforded to home-based businesses, and
you'll cut your overhead. |
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Use Personal Credit Cards
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| Rather than men and women getting
small business loans, over half of all small
businesses are initially funded with personal credit
cards. Using personal credit cards for business
startup costs can be risky, and you must keep track
of all expenses, and pay as much as you can each
month on your balances. |
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