Business Management

You may need financing to begin your business venture or to expand into a new product line or area of business. But where should you look for that capital? You have many options.

1. Check out your local bank. Since you have already established a relationship, check with your business bank. Most banks have a business department or person dedicated to serving businesses. Find out what types of financing are available, including the terms and conditions.

2. Small Business Administration. The SBA loan is partly guaranteed by the United States Small Business Administration. There are a number of different loan programs for small businesses. Each loan is actually financed through a private commercial lender.

3. Business capital lenders. These independent companies are more likely to take riskier loans than a bank. Many specialize in certain industries, loan sizes, or types of loans.

4. Private financing. Normally you can find private financing through a business capital broker who will feed your loan request to a private individual or group. Or you may be able to put together your own group of financiers.

5. Personal funds. Depending on how much you need, consider obtaining the funds from your personal accounts.

6. Family. Maybe your parents or dear aunt has some extra cash and is willing to help. Be sure to pay a fair interest rate and make your payments on time.

No matter what source you use to obtain financing for your business, be sure to negotiate your terms up front and put everything in writing. This is especially true for personal and family funds. Read all of the documents thoroughly and seek outside advice if you are unsure.

Annette Greco is co-owner of a successful home remodeling business, author of The Kitchen Remodeling Cookbook: The Survival Guide to Cooking When Your Kitchen Can’t and co-founder of On The Level Consulting. The remodeling business requires a successful combination of sales, marketing, administration and production. It is even more important for the small remodeling company to execute all areas well and in the right combination. Find out how to maximize profits while minimizing time and stress. Sign up for On The Level Consulting’s FREE online newsletter to find out how. Visit http://www.onthelevelconsulting.com