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Small Business Start Up Funding
Encyclopedia
This Small Business Start Up Funding Encyclopedia is a quick, yet comprehensive reference guide, provided to help budding entrepreneurs find sources of start up funding for a new business. While many other financing options exist (such as invoice factoring and supplier financing), only those sources related to starting a new business are outlined here.
By: Kimberly Kelly
Encyclopedia
This Small Business Start Up Funding Encyclopedia is a quick, yet comprehensive reference guide, provided to help budding entrepreneurs find sources of start up funding for a new business. While many other financing options exist (such as invoice factoring and supplier financing), only those sources related to starting a new business are outlined here.
By: Kimberly Kelly
Traditional Sources of Small Business Start Up Funding
Unsecured Personal Loans
You can normally apply for an unsecured personal loan up to $100,000 from a bank, if you have an excellent credit history, low debt ratio and steady source of sufficient income. Another option may be to borrow from family members or close friends.
Private Equity Investors/Angel Investors
Private investor financing may be an option for you, if you are willing to give away equity ownership in your company in exchange for start up money. Essentially, a private equity investors owns a piece of your business.
Commercial Loans
Commercial banks offer start up loans which are usually secured on the owner's personal property or assets. Another option is an SBA loan. The U.S. Small Business Administration offers several small business loan funding programs, which include the 7 (a) Loan, the Microloan and the SBA Express. Keep in mind that the SBA is not the direct lender, but operates as a loan guarantor. Excellent credit and a viable business plan are required for serious consideration.
Grants
The U.S. government offers grant funding to select businesses, primarily engaged in education, health and human services, technology, or research and development. Please be advised that government grants are usually not a viable option for most start up businesses. A select number of private sector grants are also made available, from foundations, non-profit and for profit organizations. One source is Business Owner's Idea Café.
Venture Capitalists
Usually, a group of seasoned investors that pool their resources into a managed fund. Venture capital is rarely offered below one million dollars, and usually only goes to start ups expected to yield a very high return on investment.
Non-Traditional Sources of Small Business Start Up Funding
Credit Cards
Credit card financing is one of the most expensive forms of start up funding. If your business plans involve start up with the use of credit cards, you may be setting yourself up for failure.
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Kimberly Kelly is a Certified Start Up Business Consultant, specializing in bootstrap start up financing. She teaches new entrepreneurs the secrets for finding free sources of business start up funding through her ebooks, seminars and coaching services. She is the author of the popular selling ebook: The Start-Up Business Survival Guide: 101 FREE Products and Services to Help Finance Your Dream of Successful Business Ownership. Visit her website at www.StartUpBusinessSurvivalGuide.com
Unsecured Personal Loans
You can normally apply for an unsecured personal loan up to $100,000 from a bank, if you have an excellent credit history, low debt ratio and steady source of sufficient income. Another option may be to borrow from family members or close friends.
Private Equity Investors/Angel Investors
Private investor financing may be an option for you, if you are willing to give away equity ownership in your company in exchange for start up money. Essentially, a private equity investors owns a piece of your business.
Commercial Loans
Commercial banks offer start up loans which are usually secured on the owner's personal property or assets. Another option is an SBA loan. The U.S. Small Business Administration offers several small business loan funding programs, which include the 7 (a) Loan, the Microloan and the SBA Express. Keep in mind that the SBA is not the direct lender, but operates as a loan guarantor. Excellent credit and a viable business plan are required for serious consideration.
Grants
The U.S. government offers grant funding to select businesses, primarily engaged in education, health and human services, technology, or research and development. Please be advised that government grants are usually not a viable option for most start up businesses. A select number of private sector grants are also made available, from foundations, non-profit and for profit organizations. One source is Business Owner's Idea Café.
Venture Capitalists
Usually, a group of seasoned investors that pool their resources into a managed fund. Venture capital is rarely offered below one million dollars, and usually only goes to start ups expected to yield a very high return on investment.
Non-Traditional Sources of Small Business Start Up Funding
Credit Cards
Credit card financing is one of the most expensive forms of start up funding. If your business plans involve start up with the use of credit cards, you may be setting yourself up for failure.
Page 2
Kimberly Kelly is a Certified Start Up Business Consultant, specializing in bootstrap start up financing. She teaches new entrepreneurs the secrets for finding free sources of business start up funding through her ebooks, seminars and coaching services. She is the author of the popular selling ebook: The Start-Up Business Survival Guide: 101 FREE Products and Services to Help Finance Your Dream of Successful Business Ownership. Visit her website at www.StartUpBusinessSurvivalGuide.com
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