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Yourself
You are the first and a necessary source of money. If your planned operation is modest enough, you may be able to supply all the capital yourself. (About 48 percent of small start-up businesses are funded by the owner.) But even if you can provide all the money,...
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While poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second. Whether you're starting a business or expanding one, sufficient ready capital is essential. But it is not enough to simply have sufficient...
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There are two types of financing: equity and debt 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...
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Approval of your loan request depends on how well you present yourself, your business, and your financial needs to a lender. Remember, lenders want to make loans, but they must make loans they know will be repaid. The best way to improve your chances of obtaining a loan is to...
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Banks are the primary financing vehicle, other than owner's savings, for small businesses.
Banks like to use hard assets such as buildings, motor vehicles, or equipment as collateral against loans. They will loan against receivables and inventory, but, especially in the case...
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Personal loans are a great back-door alternative when seeking financing for a small business venture.
One of the most common means for attaining funds for use in operating a small business is through a home equity loan. If you have been paying your mortgage for a few...
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