Finance Your Business With These Eight Techniques

During economic downturns, banks can be reluctant to take any chances with their own money fearing a credit crisis as we saw in 2008. As a result, loans backed by the U.S. Small Business Administration have become a hot commodity. Of course, funds to support special breaks on fees and guarantees on SBA-backed loans have run out several times. Additionally, SBA-backed loans are open to any small business, but there are a number of qualifications, so be sure to visit their website and make sure your business qualifies for this option.

8. Raise Money from Your Family and Friends

Tapping into your personal network is the most common way to finance a start-up. But remember turning loved ones into creditors can be risky. You’re asking to risk their financial future for your goals and can jeopardize your relationship with them if things go south and you cannot repay your debts to them as promised. In all cases where a friend or family member may finance your business, you should treat the situation as if you are approaching an angel investor (see #6 above). Do your research, present them with a clear picture and projection of the business. Make sure all of their questions are addressed and be 100% honest with them. There’s no business idea worth being uninvited from Thanksgiving dinner over.