Business With this present economic situation, no wonder why everybody is concerned about the future. More employees are been laid off from their companies and finding another job is difficult. With this unemployment arising many people turn to small businesses to have stable source of income. In fact, it is said that small businesses are now considered as the backbone of the American economy. Are you thinking about starting your own small business as well? If yes, have you considered how you’ll be able to finance the business? Have you explored the different business financing options that are available for you? In this article, let’s talk about some of the basic resources that you can use to finance your dream business. Business Start Up Loans Business loans are one of the oldest methods of financing that has been used by many successful entrepreneurs in the industry. Business loans are often provided by banks, lending companies and financial institutions in the market. If your dream business requires a large start up capital, then this is the best option for you. The application process for acquiring a business loan or a bank loan is a lot more difficult when compared to other methods of business financing. Getting your business loan application approved can also take some time, depending on the requirements of the lender. Although the specific requirements may vary from one lender to another, the basic requirements are often the same. This includes your business plan, your loan proposal, business licenses and permits, and your business accounts or balance sheets. You are expected to submit property as collateral for your loan if you applied for a secured business loan. Entrepreneur’s home property having its high value is often use as collateral. In addition, a business loan that is secured by collateral usually comes with lower interest rates and costs. Financial experts consider traditional loans as the best way to finance a business. Research and study your options before choosing the right type of business loan and the best lender in the market. Acquiring a business loan is still recommended even if your using other forms of business financing like business credit cards and leasing. Small Business Credit Cards Credit cards for small businesses can also provide the needed reinforcement for your company’s financial needs. Having a business credit card on hand can make a difference when cash flow is tight. For instance, if you received an unexpectedly large order from one of your best customers, but there isn’t enough cash to deliver the order, you may be forced to refuse the order and let go of the opportunity. If you have a business credit card, you can still accept the order, charge all the necessary and expenses to your card, deliver your customer’s order on time, and pay off your credit card charges with your customer’s payment. Equipment Leasing Another way to stretch a limited start-up capital is by leasing business equipment. Instead of spending all your cash on buying equipment, you can "lease" or "rent" them for a low monthly cost and use your available funds on other important areas of the business. Unlike a business loan that may take months before you can get approved, equipment leasing is fast and easy. Application can be done online and you can get approved within the same day or within just minutes. At the most, you can expect to receive the equipment you ordered within two weeks after your approval. Thus, an entrepreneur can obtain equipment leasing to start his business operations without delay while waiting for the completion of his business loan application. Copyright (c) 2010 Irish Taylor About the Author: 相关的主题文章: