Financing Your Business

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Financing Your Business

Description

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.

Relevancy

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.


Getting Started

GET TO KNOW THE TYPES – OVERVIEW

*Source: Sanchez, A.  Talent Capital Independent Study presentation. Duke University, The Fuqua School of Business. 19 March 2009

*Source: Sanchez, A. Talent Capital Independent Study presentation. Duke University, The Fuqua School of Business. 19 March 2009

WHAT DO THEY MEAN?

Going Further

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.*

*SBA.gov has a more exhaustive list of questions here as well as Pro and Cons of the different types of capital.

Here is a quick reference:

*Source: Sanchez, A.  Talent Capital Independent Study presentation. Duke University, The Fuqua School of Business. 19 March 2009

*Source: Sanchez, A. Talent Capital Independent Study presentation. Duke University, The Fuqua School of Business. 19 March 2009

Advanced Steps

GOING PUBLIC
FRANCHISING
ESOP?s (EMPLOYEE  STOCK OWNERSHIP PLANS)

Resources

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.

Grants.gov provides information about federal funding opportunities, including SBIR/STTR grants at http://grants.nih.gov/grants/Funding/sbir.htm

The IRS offers a broad range of business tax credits. Visit IRS.gov, or click here, for the full listing.

Trends

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.

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