Financing Your Business
Financing is the act of obtaining capital to fund business operations. For small- and medium-sized enterprises (SME?s), the type of financing can vary widely. The type that is right for you depends on many factors such as your own financial situation, long-term goals for your business, stage of maturity for your business, and more.
The goal of this guide is to provide an overview of the types of financing available, issues to consider, and resources for more information.
Firms need money to function, whether it comes from a savings account, bank loan, or credit card. The more you know about your options, the better decisions you can make for your business.
GET TO KNOW THE TYPES – OVERVIEW
CHOOSING THE TYPE AND SOURCE OF FINANCING
Each form of financing has its benefits and drawbacks. Start here by asking some basic questions about your own firm.*
Here is a quick reference:
ESOP?s (EMPLOYEE STOCK OWNERSHIP PLANS)
Community Development Financial Institutions Fund, http://www.cdfifund.gov/
U.S. Small Business Administration (for more information on SBIC?s and general finance information) ? www.sba.gov
www.toolkit.com has a great section titled getting financing for your business. Membership is free, and there are plenty of resources for small businesses related to financing as well as other topics.
The future of the SBA, like many other federally funded programs, is uncertain. Also, the total number of SBA-guaranteed loans has declined, while the average loan size has increased.
*See our recent blog postings on stimulus package funding and the SBA.