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7 Ways to Get Financing For Your Home Business |
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Written by Ila Bhatt
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Wednesday, 06 February 2008 |
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Word Count: 606 Thinking about starting a home business? Do you already own a home business
but need cash? Perhaps you can qualify for a small business loan.
However, before you attempt to borrow any money, you first have to figure out
how much money you need. The easiest way to do this is by putting together a
business plan. A good business plan is critical to your business success.
It can be a simple one page outline or it can be many pages, but it should spell
out exactly how much money is needed and what it will be used for; your
potential market and customers and potential for growth; what makes your
business unique from others; and a rational and conservative projection of your
business's cash flow.
Your plan will also help you set business goals and define the steps necessary
to help you reach those goals. It is a guide for you to refer to on a regular
basis to help evaluate your business progress and help keep you focused on your
priorities.
Besides, a business plan is almost always required when applying for a bank
loan. If you need assistance in writing a business plan, your local library
should have several
books on the subject. You can also try Amazon.com. In addition, you should be
able to get help on writing a business plan from one or more of the sources
listed below:
1. The Small Business Administration (SBA) offers numerous loan programs to
assist small businesses. It is important to note, however, that the SBA is
primarily a guarantor of loans made by private and other institutions.
http://www.sba.gov
2. The Service Corps of Retired Executives (SCORE) is a volunteer management
assistance program of the SBA that provides one-on-one counseling, workshops,
and seminars. SCORE has chapters throughout the country. Many work in
conjunction with local Chambers of Commerce. SCORE and Visa have also joined
forces to help home-based and small business owners. Contact your SBA office,
local Chamber of commerce, or the following websites for more information:
http://www.score.org
http://www.visa.com/smallbiz
3. Talk to your local bank. Find out what they require for a business loan
application and also if they are participants in the SBA loan programs. Be
diligent and shop around for the best loan packages, and make sure you fully
understand the terms.
4. You may be able to borrow from insurance policies, IRAs, 401k, stocks and
securities, etc. Check with your insurance agent. Also, investigate what the
policies are regarding borrowing from your mutual funds or retirement account.
Before borrowing, make sure you fully understand the pay-back terms and any
potential penalties.
5. Apply for a home equity loan. Borrowing against the equity on your home is
permitted in all states except Texas. Just make sure you're diligent about
paying back the loan or you could end up losing your home.
6. If you're a woman, you may be eligible for a Specialty Loan. These types of
loans are now being offered by local banks. Who knows? Filling out a one-page
application just might get you an unsecured credit line or loan ranging from
$2500 to $50,000.
7. Try borrowing from family members and/or relatives. If you have a good
relationship with your family, perhaps you can make a persuasive argument for
them to loan you money for your home business. Just remember, borrowing from
family or relatives shouldn't be treated any differently than borrowing from a
bank. It's just as important to pay them back on time as well.
For More Free Resources visit
www.start-ownbiz.com
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