How to Obtain Business Financing

Adequate financing is essential to start-up and run a successful business. Sometimes, finding adequate business funding requires creative and new ideas to be effective. It is important to learn various portfolio development ideas so that your business will thrive.

• Research governmental websites. Sites such sba.gov offers information and links for business startup entrepreneurs.  This organization used to be called business.gov but this changed to the Small Business Administration at the web address sba.gov.


• Consider alternative funding sources such as peer-to-peer borrowing.  There are companies specializing in allowing individuals to lend and borrow funds. Two of the more popular companies include Prosper and Lending Club.  These are good options for people turned down by banks because traditional lending institutions are not dispersing loans for business startup without great credit or large collateral.


• Look into seller financing if you intend to purchase an already existing business. Many business sellers realize the difficulty borrowers face when securing business financing. The seller generally requires a down payment in cash, and then a promissory note confirming your intent to pay the remaining purchasing price plus interest over a specified period, such as three to five years. 


• Contact your local nonprofit Score office to explore business startup workshops and seminars.  Mentors help small business entrepreneurs with individual counseling and financial record resources and advice that is necessary while securing a business loan.


• Fund your business with a loan or direct cash out of part or all of your retirement funds.  The new ERISA law allows you to invest your IRA or 401(K) to fund a business without incurring any early distribution penalties.