Business, Loans, Financing Made Simple...
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Business, Loans, Financing Made Simple...
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by: John Williams Business loans can be defined as money lent for a specified amount of time at a specific interest rate to a specific person or people that operate a business or plan to operate a business. This definition is very broad, but so are the various types of loans available to business people. Deciding on which type of business loan that you and your company will benefit from the most is very important. Often times, a start-up business or someone that has never owned a business will find themselves more or less applying for a ?personal? loan. This can be a very risky endeavor, mixing business loans with personal loans, however, often times it is the only available means for first time business owners. One of the first things personal business owners need to do is establish business credit. Business credit can help you get a business only loan without using your personal credit. Establishing business credit can be done by: 1.) Opening up a business credit card account and paying it in full. 2.) Buying equipment and supplies from companies that will report good standing to the business credit bureaus. 3.) Having a good business plan with potential earnings, letters of intent, and any type of customer contracts already laid out. All of these types of endeavors can help in receiving a business loan. Often times, financial institutions require in-depth business plans, be prepared to spend days working on just the certification paperwork prior to applying for a business loan. A business only loan can be obtained in the business name without use of personal credit as long as the business can justify the loan amount and the ability to pay it back.
 There are several different types of business loans available, ranging from those secured with collateral, non-secure loans, which are based upon the credit worthiness of the applicant, and even government loans for small business ventures, woman and minorities. Government loans are those loans secured by the government; in most instances these loans are available when the business or owner can prove that the community will prosper based upon the business at hand. For the most part, government loans are based upon personal credit. The basis for which you may need or require a business loan may vary. Some of the most common business loans available to business owners are:
One of the most important tools when deciding on what type of business loan your company needs is research. Researching the different types of loans available to you and your company can save you money. First, look into the different type of business loans available to you in your state. Many states have government loans available; some even offer grants, which is money available for specific purposes that do not require repayment. Research the different type of Federal loans available. You can do this at the following website: www.sba.gov. Call your local bank and investment companies regarding the business loans they have available for you. Many times, business loans are not that hard to acquire. With research and a good business plan, your dreams may come true.
 Before the Business Plan by: by: Ellen Zucker Purveyors of conventional wisdom would have you believe that the very
first thing you ought to do when setting up a new business is to create a
business plan.
Don't limit your research to purely business data. You are building a life as well as a business. Are the demands and conditions of your proposed business compatible with the life you want to create? For example, illustrators often work on short deadlines - meaning that sometimes they have to work far into the night to complete a project on deadline. Plus, some clients are demanding and some do not pay on a timely basis. After all of that, can you still "love it" enough? Or, maybe your business is such that sales fluctuate during the year. How will you make it through the lean months? Can you handle the uncertainty of a fluctuating income? So, how do you find information? First, if other people provide services similar to yours, talk to them. You will gain a lot of information quickly. Their answers to your questions will save you a lot of legwork and open your eyes to factors you may not have considered. Try to talk to at least five or six people so you can get a range of viewpoints.   You can find them through trade associations, schools, word-of-mouth. If the locals are reluctant to share information - perhaps because they see you as direct competition - look for similar people in a different locale. Second, create the information you need. Mimic and simplify what large businesses do. Reduce their methods down to a level that is practical and affordable. For example, perhaps you want to survey potential clients and customers to get feedback. If you are a creating a micro-business on a shoe-string, it may not be affordable nor practical to commission a focus group. But you may be able to speak to potential targets informally or use direct mail to send a simple survey.  Eventually you'll have to 'put your toe in the water.' Try it out in a small way - so you won't lose much if it doesn't work - and observe the results. Then experiment and modify as needed. Once it works to your liking you can plunge right in. This approach, known by the technical term "trial and error," can be applied to any facet of your business. After all, even the largest producers test market new products before rolling them out. Put some parameters around your efforts. Decide, in advance, how much time you want to allow and how much you want to budget. 
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