Trends change as time passes by, and for business owners, being aware of these changes is an essential step to stay on top of the market. In this article, let’s talk about the trends in business financing for the year 2011
Angel investors can be individuals or independent groups that are looking for promising businesses to invest in. Angel Investors became very popular in the late 90s and since then, has continued to be one of the most recognized means of business financing, particularly with
small business enterprisers.
Equipment lease financing
Equipment leasing is one of the most preferred ways of business financing not only for small businesses but even for big and established businesses. Through leasing, having a limited working capital does not have to be a big hindrance in bringing those bright business ideas to life. Because a lease is paid in instalment, a business owner is given the opportunity to obtain all devices or machines needed for the operations without a lot of upfront cost.
Many wholesale suppliers offer credit to their small business clients especially if they can present an impressive credit standing. Do inquire from prospective vendors who can supply you with your needed materials and stocks if you can be extended credit.
If you are having difficulty getting approved for a bank loan or commercial loan, you can seek assistance from the Small Business Administration (SBA). By being backed-up by the SBA, it will be easier to get an approval from your chosen lender. However, take note that the SBA has its own standards in reviewing business loan applications.
Business Credit Cards
Today, an increasing number of business owners are recognizing the advantages of using credit cards for small business. Instead of using their personal credit cards, they are using business credit cards to separate their personal and business accounts, and to build business credit history. In the long run, having a solid business credit will be a huge factor in the future growth of a business and one of the easiest ways to build credit is to use a credit card for business.
Even today, many small business entrepreneurs still prefer the traditional method of business financing. Why? This is because banks usually offer a larger sum of financing compared to commercial lenders. For homeowners who are willing to use their homes as collateral, a secured business loan gives them the chance to get the financial support they need to start their businesses with lower interest rates and longer repayment period.