Finding Funding & Financing

Please share funding sources that helped your business
Finding funding remains one of the prime needs for many business owners. News reports over the last few years describe the problems American business owners face obtaining credit or funding. A lot of credit disappeared when CIT Group a commercial lender entered bankruptcy. CIT customers included “a wide swath of the nation’s small and midsize businesses who rely on the company or financing”.
The Small Business Administration provides loans to small-business owners. They offer a variety of programs depending on the needs and qualifications of the business. The SBA does not loan the money themselves. They guarantees loans on behalf of qualifying small-business owners. They require a lot of paperwork.
Business lending continues even though less money and credit remains available to business owners. Interestingly, small or regional banks and credit unions appear to possess money to lend. Check your local or regional banks. However, upcoming problems in the commercial real estate loans may create a new tsunami of problems for regional banks.
Angel Investors usually consist of former entrepreneurs who made a lot of money and now want to invest in other startups or small businesses. Unlike Venture Capital investors, Angel Investors seldom want to own or manage the business. They seek a turnover and high return on investment. You can find angel partners by using Gust.com.
Scalable businesses currently receive 98% of the funding currently awarded to business startups and small-businesses because they offer extremely fast growth and return on investment. I discussed that in an earlier post called Can Your Business Idea Succeed. You can also discover more about funding by reading Steve Blank, author of The Four Steps to the Epiphany, offers amazing tools, books, and other resources to startups.
Our next blog will explore angel investors more deeply.
Help others by sharing funding sources that helped your business