Business Finance for Small Business
Introduction to Business 1301
14 April 2013
Business Financing for the Small Business: Go Fund Yourself Business financing takes on many forms, from the traditional to the contemporary. This paper explores the various ways a small business entrepreneur might consider financing his or her enterprise. The type of financing pursued by any entrepreneur will largely depend on the type of business being financed, the amount of financing needed, and the type of relationship one wants with the financier. There are four major types of business financing: the bank loan; personal financing; venture capital; and crowdfunding. The report will explain how each type of financing can be obtained and will match that financing to the best type of business suited to obtain it.
Bank Loans There are many reasons small businesses apply for loans. One of the more popular ways to apply is through a bank. Bank loans can be very time consuming for the business owners and do require a great deal of paperwork. When a small business owner decides to apply for a loan there are a few steps they should take before making an appointment with a loan officer. The first step a small business owner should take when applying for a bank loan is to pull their personal and business credit reports. They should also perform background checks on all of the company’s owners. Some banks may also require resumes on all of the owners. There are three bureaus that report personal credit history and ratings: TransUnion, Experian, and Equifax; Dun and Bradstreet (or D&B) reports business credit history and ratings. The information in all of the reports should be verified and checked for accuracy. Any inaccuracies should be removed prior to submitting the application. This includes anything negative and anything that can be corrected beforehand. The next step the business owner should take is to prepare a business plan. A well-organized business plan is very important in showing the loan
14 April 2013
Business Financing for the Small Business: Go Fund Yourself Business financing takes on many forms, from the traditional to the contemporary. This paper explores the various ways a small business entrepreneur might consider financing his or her enterprise. The type of financing pursued by any entrepreneur will largely depend on the type of business being financed, the amount of financing needed, and the type of relationship one wants with the financier. There are four major types of business financing: the bank loan; personal financing; venture capital; and crowdfunding. The report will explain how each type of financing can be obtained and will match that financing to the best type of business suited to obtain it.
Bank Loans There are many reasons small businesses apply for loans. One of the more popular ways to apply is through a bank. Bank loans can be very time consuming for the business owners and do require a great deal of paperwork. When a small business owner decides to apply for a loan there are a few steps they should take before making an appointment with a loan officer. The first step a small business owner should take when applying for a bank loan is to pull their personal and business credit reports. They should also perform background checks on all of the company’s owners. Some banks may also require resumes on all of the owners. There are three bureaus that report personal credit history and ratings: TransUnion, Experian, and Equifax; Dun and Bradstreet (or D&B) reports business credit history and ratings. The information in all of the reports should be verified and checked for accuracy. Any inaccuracies should be removed prior to submitting the application. This includes anything negative and anything that can be corrected beforehand. The next step the business owner should take is to prepare a business plan. A well-organized business plan is very important in showing the loan
Cited: Web 14 April. 2013 Ganis, Stephen L Web 14 April. 2013 “Learn How to Raise Money for a Simple Idea.” Indiegogo