business & finance
Entrepreneurs Capitalizing on New
Sources of Capital Today
By Melissa Peterman
G
etting a small business loan isn’t
as easy as it once was. Therefore,
entrepreneurs are looking to
other financial sources for small busi-
ness loans. Venture capitalists and
other financial institutions are helping
small businesses get capital fast in a
time when cash is hard to come by.
How Much Should Your
Small Business Loan Be?
According to business researchers,
the general rule of thumb for beginning
small businesses needing a loan is “to
have a sum of money at least equal to
the projected revenue for the first year
of business in addition to anticipated
expenses.” For example, if the restau- Other Sources of Capitol if You will have to pay any additional
rant owner believes he or she will You Can’t Get a Small payment even if your business fails or
make $200,000 in revenue for the first Business Loan, or You Need you may lose your house.
year, with $250,000 in building and More Capitol Than That
starting up expenses, than they should • Deposits
have no less than 350,000 available. • Credit Cards Get deposits from your customers in
Otherwise, the restaurant owner could Credit cards should be used with advance for products or services- that
be faced with huge amounts of debt or caution. Rates can be high and mini- way you will have cash fast in order to
bankruptcy. mum payments low. But if you are fulfill quick cash needs.
Without an accountant, advisor or unable to pay back the credit extended
proper funding, small businesses can in a timely manner, it can lead to a Extend Your Payment Plan
aim high but end up falling short and financial nightmare for you and your
blow their opportunity to do it right business. • Negotiate extended terms
and become successful. The first step on money owed to vendors
they can take is to get the assistance • 401K and IRA/Retirement Any cash you can use now before
from a small business credit service Money you borrow money will help you out.
that help small business owners reach Many 401K and IRA plans allow Working with the capitol you have and
their financial goals and give them the you to borrow from your retirement making it work will be the leverage
assistance they need to be successful in savings for a limited time without you can use to show a venture capital-
all areas of their business. penalty. You must pay it back on time ist or another financial firm that your
If you don’t have access to friends or there are big penalties. business is not considered a bad risk.
or family with deep pockets, for small HNM
businesses looking for credit services, • Home Equity Loans
Source:
articlesbase.com
there are plenty of professional organi- With interest rates being low and
Melissa Peterman is a web content specialist for Innu-
zations who specialize in giving small tax deductible, some people do look
ity. For more information about Small Business Loan,
businesses quality, affordable loans. here for capital to start their business.
go to www.Innuity Funding.
46 Celebrating over 15 Years of Embracing Diversity WWW.HNMAGAZINE.COM
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