Fund That Dream!
Get all of your research and data together and prepare a solid business plan;
Check your credit report;
Should you actually see a banker, be professional and polite;
Be ready for anything.
Types of credit
Know what you are asking for. If you're going to ask for credit, you need to know what programs are out there.
Commercial Finance
Loans to finance working capital, accounts receivable, purchase orders, or inventory. Typically, these loans must be secured by assets.
Equipment Leasing
Financing for the purchase of a specific piece of business equipment.
Real Estate Finance
Financing for the purchase of Real Estate, or for the construction of business facilities.
SBA Programs: Government Funds
The U.S. Government is a sources of small business capital, mainly through the Small Business Administration (SBA). The SBA was created to help small business. They have developed many programs, but are still, in the main, ineffective in assisting women and minority businesses. Still, you should be aware of the programs they offer. Below are summaries of major SBA loan programs.
7 (a) LOAN GUARANTY: The 7(a) loan guaranty program is used by private-sector lenders. These private sector loans are then guaranteed by the SBA.
7(a): LOWDOC: same as above, but all loans are under $100,000. The program uses a streamlined and expedited loan application and review process.
7(a): CAPLINES: For small businesses needing short-term working-capital. Actually, five separate programs.
7(a): POLLUTION CONTROL: For financing "the planning, design, or installation of a pollution control facilities."
7(a): MINORITY AND WOMEN PREQUAL: According to SBA, "This program is designed to assist minority and women borrowers in developing viable loan application packages."
MICROLOAN PROGRAM: This program provides small loans from as little as $100 up to $25,000.
CERTIFIED DEVELOPMENT (504 LOAN): Program providing "long term loans for the purchase of land, buildings, machinery, and equipment."
If your credit is not clear, but you still have credit cards, be it known that most small businesses are financed this way. Some credit card companies have excellent revolving credit programs for small businesses. Although I highly discourage the use of credit cards in general, if you feel confident about your business plan and cannot get financed any other way, by all means...
Above all else don't be discouraged. Utilize the Internet to network and find information. There are so many people who have started successful businesses on a shoestring (myself included, although I started on the thingamabobber that's on the end of the shoestring!)...and they are talking
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