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Home Based Business Financing Guide

Well, the good news is there are several resources available to finance your home based business. You’ll have to do some research to find what’s available in your area, but this guide will show you several areas to begin looking to get the financing you need for your home based business.

The Small Business Administration (SBA) is an excellent place to turn to for home based business financing. It doesn’t make grants that your home based business won’t have to pay back, nor does it make direct loans to small and home based businesses. Instead, the SBA guarantees loans given by private lenders. This reduces the risk associated with new business ventures and makes it easier to get lenders for your home based business. However, to get a SBA loan, your home based business must be a profit making one, and you will have to guarantee your loan personally. This means putting your personal assets at risk. Also, to be eligible for an SBA assistance and/or loan, your home based business has to be in the United States, and there’s other criteria that must be met. Still, if you’re looking for financial assistance to start your home based business, the SBA is a good place to start.

Private grants are another type of financing you can look into for your home based business. There are many different types of grants, and there could likely be one for your home based business. The Internet is a great place to do your research. The grant process can take awhile, so if you decide this is the route you want to go for financing your home business, and your home based business meets the criteria of a grant, you will want to get started with the grant writing process as soon as possible. Also, you may need to hire a grant writer to help you. Grant requirements are strenuous, and there’s a great deal of competition for small and home based business grants. It’s well worth the time and effort to research grants, though, to try to get a grant for your home based business because the money given does not have to be paid back.

Another type of home based business financing is through what’s called angel investors. These are investors who are willing to lend money to fledgling small and home based businesses, generally because they know a good thing when they see it and are willing to take some risks. Angel investors for home based businesses may not be that easy to find, but with some networking in your area, you’ll be able to locate several. Joining your local Chamber of Commerce is a good way to find angel investors. Also, talk to accountants who may be able to bring together several investors for your home based business. This happens a lot more often than you might think because investing in a small or home based business can provide a good tax break for many people. And then there are just some good souls out there who want to help others start home based businesses because they’ve been there themselves and managed to create successful home based businesses of their own.

One final note. The only investors to be wary of for your home based business are those you might find in your own family. It just simply isn’t a good idea to borrow money for your home based business, or for anything else for that matter, from family members. There are just too many things that can go wrong in a financial obligation like this. A family member you borrow money from to start your home based business may pressure you to run the business their way, or worse, your home based business could go under and have to declare bankruptcy. It’s horrible to lose any investor’s money, but when it’s Uncle David’s, it’s much worse. So only borrow money for your home based business from family members as a last resort, and only if you’re certain you have a sure thing.

Charles Fuchs

http://www.charlesfuchs.com

http://charlesfuchs.blogspot.com

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Business Plans Keep You On The Success Course

Where would your business be without a proper plan? A
business plan sets the direction for the future of the
business. It gives the business owner or manager a sense
of guidance, listing the goals and objectives of the
business from the start.

Writing a business plan requires your attention; a
successful business plan cannot be rushed. Once a
concept for a business has been developed, looking at
the many facets of owning and operating your business
is the next most crucial step. Often, your local county
council will be able to assist you with gathering the
required information of a legal aspect, as should your
local business enterprise people. The balance of the
work will be up to you! You will need to research
products for your business to sell, at the same time as
researching other enterprises that may be in immediate
competition to you. In addition, you need to research
the marketplace to see whether there is a need for your
business service or product.

With the research out of the way, sitting down to write
a business plan requires focus. Your business plan will
become the bible of your business for at least the next
3 to 5 years so it is important to make it clear, concise
and comprehensive. Most enterprises will complete a
SWOT
analysis to determine their strengths, weaknesses,
opportunities and threats of the business. While the
business is in infancy, brainstorming would be the most
accurate way of performing the analysis, as the business
would not yet have customers and profitability would not
yet have been experienced. However, it is very important
to remember that a good business plan is flexible and can
be changed as your business experiences grow.

After completing a SWOT analysis, you will need to
create your business name if it has not already been
determined, as well as your vision and values, your
business goals and long term purpose and how you will
achieve all of this when the business is up and running.
Writing each thought down regardless of how insignicant
you
feel it is will allow you to collect everything pertinent
to your business for easy reference when needed. Who
knows,
the thought of today may turn into a million dollars in a
short time! A business plan is the roadmap to a successful
business!

Don’t let the small stuff get in your way of taking
control of your future. Remember – It’s All Small Stuff!

Bad Credit Business Loans – to Exchange Bad Credit for Monetary Benefaction

You want to raise a business on your own or you want to expand it further. You have a plan and the vigour to make your mark in this field. The company that produces refrigerators to the one that produces anti wrinkle cream; every company no matter how small it is – requires money, hard core moolah to take it to great heights. You dream of the same every night. But isn’t there a nightmare that invariably spoils your dream every time you plan your business. It is bad credit. So, how to end this chain of unpleasant circumstances? Bad credit business loans have furthered the cause of preventing financial mishaps for people who want to make it on their own.

Not every loan lenders is geared to provide bad credit business loans. You know you have bad credit if you are a bankrupt, CCJ, default, charge off, or have any past loan related arrears. Start from the beginning – get to know your credit score. A credit score enable the loan lender to judge the credit worthiness of loan borrower. It is a number generated by statistical methods. Based on these number bad credit business loans contenders are given grades like B, C and D. All these grades mean you have to apply for bad credit business loans. Starting a business with credit score ranging from 500-550 could be ideally done with bad credit business loan. Try to get an objective assessment of your credit report before you undertake your quest for bad credit business loans.

Now that you know about your credit score, concentrate on your business budget. You should be clear about your money requirements before you take out bad credit business loans. Your Bad credit business loans should be backed by a feasible business plan. Don’t go applying for a bad credit business loan, if you are not ready with a business plan.

You can’t expect to get a bad credit business loan without a proper plan. Bad credit business loan application that is replete with all the required information is usually placed on the top of the pile of applications. Provide your bad credit business loans application with the nature of your business, the objective of using the business loan, business name, your social security number. Be prepared with all the required documents before you go ahead.

Paperwork should be complete whilst you go for bad credit business loan hunting. Get a lawyer to review your loan papers and also check with him before signing any papers. Don’t hand over your documents to the loan lender and don’t sign any blank document.

You have bad credit. So your approved bad credit business loans application will bring with it higher rate of interest. Nevertheless bad credit business loans can be very good source of finance. The amount you can borrow with bad credit business loans is £50,000 and £1,000,000. The loan repayment term would be any where between 3 to 25 years depending on the loan amount. A secured business loan with bad credit will usually have lower rate of interest than unsecured bad credit business loans.

Bad credit business loans are a very good form of finance because it has an exceptional amount of advantages. The biggest convenience with bad credit business loans is flexibility and freedom. Bad credit business loans can provide continuous access to cash. You also get to hold your ownership of your company instead of resorting to selling the interest of your company in order to raise money.

Alright, you got approved for your bad credit business loan. You are high on the cloud, but did you read the fine print? You are nodding your head in the negative. Fine prints may carry at times hidden charges, including annual fees, bank charges, closing costs, commissions and balloon payments. Borrowing money for business with bad credit is not only serious but liable to fraud and deception. Don’t get into something you are not comfortable with and also ask questions about fundamental things like APR, your monthly payments etc. on your bad credit business loan.

You want to do business, you want to do the right way, you want consistent inflow of cash, and you want to retain your business completely. You have bad credit and all you need is a bad credit business loan. Bad credit means rejection? Not these days. It was like in 1957. That was long back. Bad credit business loans now means requisite start up for business.