Posts Tagged ‘business financing’

Financing Your Small Business

Financing Your Small Business: From SBA Loans and Credit Cards to Common Stock and Partnership Interests

When starting a business, you usually will need some money. If you work at home, then you might be able to keep your startup cost down. Also, some types of businesses require more upfront money than others. Depending on your strategies and the business you are starting, you may need to consider several financing options. This book called Financing Your Small Business: From SBA Loans and Credit Cards to Common Stock and Partnership Interests will give you ideas of many different ways that you can finance your business. Getting help from the Small Business Administration (SBA) is one popular way but not everyone will qualify for SBA’s help so it is good to know other financing options too. While many people look for business loans to start their businesses, you do not have to under many circumstances.

Secure your business’s future using the right SBA loan, bank loan or equity financing for you. When it comes to your chances of receiving financing and doing it right, Financing Your Small Business provides you with all the answers you need. It helps you find ways to combine various types of financing and shows you how to get the money you need. Learn:

  • How to get a bank loan
  • How to make a better presentation How to get attention with your business plan
  • How to choose professionals
  • How to value your business
  • How to determine your investors’ status
  • How to avoid securities law problems
  • How to find investors

From SBA loans to venture capital sources, Financing Your Small Business shows you all the ways to get the money you need.

Raising Money Just Got Easier.

About the Author

James E. Burk has been helping emerging companies in their initial stages of organization and growth for over thirty years. Mr. Burk is a graduate of the University of Texas at Austin Law School, and is a member of the bars of the District of Columbia and Texas.

Richard P. Lehmann assists clients with a variety of business matters, including corporate issues and securities law. Mr. Lehmann is admitted to practice in the District of Columbia, Virginia and Minnesota.

Buy Financing Your Small Business: From SBA Loans and Credit Cards to Common Stock and Partnership Interests

Types of Financing For Businesses

There are two types of financing for businesses: equity financing and debt financing. Each business, including work at home business, must choose the type of financing based on the business’ needs, how attractive the business looks to investors, and the business’ ability to provide returns on invested capital. Both equity financing and debt financing can help a business raise money but they both have advantages as well as disadvantages so you need to consider which financing option is best suitable for your business.

Financing for Work at Home Businesses

Some work at home business owners think that because they have home based businesses, they do not need to go through so much trouble figuring out the best types of financing for their businesses. However, if your business needs financing, regardless of the size of your business, then you are going to have to consider all your financing options.

What to Consider When Seeking Financing

When looking for money, you must consider your company’s debt-to-equity ratio – the relation between dollars you’ve borrowed and dollars you’ve invested in your business. The more money owners have invested in their business, the easier it is to attract financing. After all, lenders want to see that a business owner is at risk and is committed to making the business successful. The more successful the business is, the sooner they get their money back.

When to Consider Debt Financing

If your firm has a high ratio of equity to debt, you should probably seek debt financing.

When to Consider Equity Financing

However, if your company has a high proportion of debt to equity, experts advise that you should increase your ownership capital (equity investment) for additional funds. That way you won’t be over-leveraged to the point of jeopardizing your company’s survival.

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