Starting a new small business is an excellent move, especially if you have this very great idea for a business venture, and you are tired of the boring and taxing routine that comes with a 9 to 5 office job. But establishing your company can be a struggle as well, especially if you have limited sources of funds or none at all. The money will always be a constant factor, and the lack of it will certainly hamper your dreams of becoming an entrepreneur. But like the adage says, when there’s a will, there’s a way. If you are having problems on financing a new small business project, there are lots of ways to work around it.
The small business sector is responsible for keeping the economy afloat. That fact points out that the small business industry is a steady market and a stable source of livelihood. That means that even after the recent economic slide a country has experienced, a significant number of small to medium size businesses are popping up because there are getting the start up funds.
The best way for financing a new small business start-up is to save up for the initial capital. That means you do not need to give up on your job yet. One huge advantage of staying in your current job and saving up is that you get to cover yourself and your loved ones with insurance policies, a feature not immediately present if you are still a young business owner. Saving up also equates to you living frugally and drop other unnecessary and unessential expenses from your list of financial activities. Read More
Access to capital to small businesses is the lifeblood of any successful business. Our country has seen first hand what happens when small business owners and entrepreneurs do not have this access to capital readily available. Small business owners cannot hire employees, start awarded projects, create new markets, or keep their businesses moving forward.
Now that were coming out of what many called a recession, there are going to be new boundaries as far as what consists of a successful small business. The last ten years the banking sector forced the small business community to become lazy in their bookkeeping and operations. Business loans and lines of credit were being handed out without even showing a single piece of paper to the bank. Today however, the rules are different. Banks and lending institutions are going to be looking full circle at your business to make sure that you are in fact a low risk small business borrower.Banks and lending institutions are going to be looking at your entire business before approving you for a business loan or line of credit
Looking full circle in your business means that you need to be prepared and organized. One of the most important aspects of being approved for a business loan or line of credit today is having good business credit scores with all three business credit reporting agencies. The three main credit reporting agencies are Dun & Bradstreet, Experian, and Equifax. Lexus Nexus is another business credit reporting agency that is coming to the service pretty quickly. Each credit reporting agency reports data a bit differently, or aggregates their data from different sources. One agency might have more information on your bank account standings where a different agency might have more information on trade lines. This is why it is important to grow and monitor your business credit with all three agencies. Read More