Startup Business Financing: How To Find Funding For Your New Small Business

Having a tough time finding funding for your new small business

? It's no mystery that one of the main reasons businesses fail is lack of capital.

So to help better prepare yourself for success in your new business venture I've put together a few tips and funding options you may find useful.

One of the key steps you should first determine is how much funding you need to not only start your business but also stay in business too. Don't make the mistake of underestimating these numbers by projecting unrealistic revenues from future sales.

Next, plan a short term and long term startup business credit strategy which consists of funding the launch of your business (short term) and building your business credit files (long term).

Starting a new business involves risk and limiting the use of your personal credit and personal guarantee should be a priority for you.

Unfortunately, many business owners fail to establish business credit separate from their personal credit right from the onset. As a result they find themselves back peddling and end up relying on their personal credit to finance the growth and expansion of their business.

Only after they exceeded their personal credit capacity do they realize that building business credit should have been part of their overall strategy. Don't let this happen to you!

Some of the more popular options you have for startup business financing (short term) include:

P2P Loans

Microfinance Loans

Social Loans

Loans for Small Business

Business Credit Cards

Startup Business Grants

By also building your business credit files (long term) your business will be in a position to qualify for its own financing at much larger amounts without using your personal credit or personal guarantee.

Some of the funding sources that result from building business credit (long term) include:

Vendor Credit Lines

No Personal Guarantee Business Credit Cards

Business Line of Credit

Equipment Leases

Fleet Programs

Remember, you can obtain 10 to 100 time's greater business financing with a strong business credit file than you could using your personal credit.

When you compare corporate credit vs. personal credit there are many critical things to consider including protecting the corporate veil.

Finding funding for your new small business can seem like a serious challenge in today's economic environment especially if you resort to conventional means. There are quite a few creative business financing options available so don't get discouraged.

Part of building a successful business is putting a sound business financing strategy in place for both the short term and long term needs of your business. By doing so you can overcome one of the most common factors that cause businesses to fail which is lack of capital.

by: Marco Carbajo

POST COMMENT

How Does Energy Healing Work? Fort Worth Real Estate: A Roadmap of New Home Communities The New Home Communities of San Antonio's Wilshire Homes Photovoltaics And Their Function In The Advancement Of Renewable Energy Photovoltaics And Their Role In The Future Of Solar Power Proper Maintenance For New Tires And Used Truck Tires In Tampa Fl Nikon D80- A New Way To Take Perfect Pictures Photovoltaics And Their Part In The Advancement Of Solar Energy Photovoltaics And Their Role In The Future Of Solar Energy Things To Do In Nyc Summer Time - New York Is The City That By No Means Sleeps What Catering Supplies Will I Need When When Opening My New Restaurant SEO Company services: helps your business scale new heights How to Cook Quinoa - Your New Weight Loss Must-Try Method