Articles

How to Finance a Start-up Business to Realize Your Dreams of Becoming an Entrepreneur

by Irish Taylor Business Consultant
Here are some suggestions you can employ to successfully finance the dream business you wish to build and manage:

- Scout for business start-up loans. Look for companies that deal exclusively with start-up business owners, like you. Then, examine the features of the credit programs they offer. By doing so, you will not just find a suitable financing deal that will match the financial requirements and capability of the enterprise you wish to establish. More importantly, you can have ample funds ready, which you can use for securing and processing the necessary permits and government licenses, purchasing product inventory or much-needed equipment, hiring manpower, etc.

There are two main types of business start-up loans. They could either be secured – that is, with collateral requirements - and unsecured, or no collateral involved yet with steep interest rates and fees. So, it is up to you to choose which of these programs will work to the advantage of your small business. Just remember to shop around and compare their features to improve your chances of finding one that will surely meet your preferences and expectations, as the business owner.

- Sign up for small business credit cards. If you simply wish to have a line of credit that you can use to cover your start-up costs then, we encourage you to apply for small business credit cards. Like business loans, there are also two basic kinds of these card accounts – secured and unsecured.

If you wish to have a line of credit that you can use in emergency situations and you have more than enough cash to cover the application and security deposit requirements then, it would be wiser for you to take out and manage a secured business credit card. Meanwhile, if you wish to use a credit card that comes with a higher spending limit and you don’t mind paying steep rates and fees, on a monthly basis then, we advise you to get an unsecured business credit card from a card issuer, nearby.

- Get a business equipment lease. Another excellent solution for entrepreneurs with limited budgets is business equipment leasing. In this option, you will arrange to rent or lease manufacturing equipment, office furniture and fixtures, or vehicles with manufacturers or suppliers, nearby. This is often considered a cheaper alternative to purchasing equipment, since you will only pay a minimal “rental” charge, each month.

Moreover, with this option, your business won’t incur costs that are usually associated with owning and maintaining office or production equipment. Yes, there’s no need for you to set aside funds to cover depreciation or obsolescence costs, machine insurance premiums, as well as repair and maintenance works.

Some Last Minute Reminders

- Strike business and credit deals only with legitimate and credible firms, nearby. In so doing, you can reduce your risk of getting ripped off by popular scams and at the same time you can prevent unscrupulous individuals from gaining access to the financial information of your enterprise.

- Don’t sign your contract unless you’ve read and thoroughly examined the terms and conditions that apply to your start-up business loan, small business credit card, or business equipment lease. Keep in mind that this tip will help you avoid having regrets, later on.



Sponsor Ads


About Irish Taylor Innovator   Business Consultant

17 connections, 0 recommendations, 54 honor points.
Joined APSense since, March 26th, 2013, From Las Vegas, Nevada, United States.

Created on Dec 31st 1969 18:00. Viewed 0 times.

Comments

No comment, be the first to comment.
Please sign in before you comment.