Websites and Information on Startup Funding for a New Business
Many people feel they would be more successful in starting a small business themselves instead of relying on a job. Finding finance is often the first step.
Finding startup funding for a new business is not as difficult a hurdle as it may seem. Despite more challenging economic times, there are several ways to go about finding the finance necessary to launch a small business successfully.
Small Business Loans
Many lenders will approve loans up to $30,000 based on personal credit. The lender concerned may still want to see a business plan and hold the small business owner involved personally responsible for repayments. Having a good credit score and minimal debt will increase the chances of getting a small business loan approved.
SBA loans (US Small Business Administration) loans can be applied for in the form of a Microloan, Certified Development Company loan or a Basic loan Guaranty. Also, the SBA offers excellent information and resources to help the small business owner succeed.
Borrowing from 401k is a good option if cash-strapped, up to 50% of the assets in a solo 401K or $50,000, whichever is less. The entrepreneur concerned will be borrowing his or her own money and paying it back with interest, usually within five years. Another advantage is that there are no taxes or penalties imposed for borrowing in this way.
Financing a Small Business – Websites that can Help
Useful websites that can help new business owners find the funding they need is:
- go4Funding.com, which is a resource that can help hopeful entrepreneurs that require startup funding with investors who may be willing to provide the finance necessary.
- iBank.com is a site dedicated to helping small business owners to obtain the financing they need to get started. It also offers additional help and resources for business plans, website design services, equipment leasing and so on.
- gobignetwork.com pairs entrepreneurs with potential investors. A small business owner can post a funding request online. Lenders include venture capitalists, angel investors, banks and more.
Startup Funding – Finding a Financial Partner
Think of finding a financial partner by approaching family members, friends or work colleagues. Draw up a contract that all parties are satisfied with, detailing repayments, interest rates and/or whether the partner will get a percentage of the profits. A financial partner will be more likely to lend money if he or she sees that there is a business plan in place and that the business venture has a real chance of success.
It is not a loan to start up a business; it is instead for working capital requirements. Lenders offering a cash advance get their money from the credit card sales. It reduces the burden of paying back a loan, and the terms and conditions to qualify for a cash advance are relatively straightforward and straightforward.
There is no shortage of places to find small business loans these days, and online searches for finance make it easier than ever to compare between lenders to find a tailor-made loan.