Starting your own small business is always a good idea. Finally, you make your own money and you share the profits with other people too who work with you. In addition to it, you are a better person when you can establish everything by yourself. What is about the financing? Here are several sources you should consider.
Investors and Partners
You can split the business with trusted friend or family. They will make the role as your partner. In this case, they will invest their money as well. They will also help you decide everything. Or, you can make an agreement that they will be your investors and you will make the decision with their approval.
Peer to Peer Landing
This is a common solution. You will have investors as well, but commonly, they are strangers. They will trust their money on your business with a hope on better returns. The benefit will be your interest is not as high as you will get from the banks. In addition to it, these people will like to help you promoting the business. They want good rise on their money.
Loans from Community Bank
This loan is friendlier comparing to other common commercial banks. The interest rate is not that high and the payment policy is more realistic for us. Those aspects give you enough space and time to develop your business and regularly pay back the money you owe.
Micro Loan Financing
This is special program we can have to empower micro business. On most cases, it makes a nice help too. Several micro businesses have been on recession and they empower their business on this financing solution. This financing can come from two sources including individual financing and governmental micro program like on small business administration guaranteed loans.
Community Development Financial Institution
It is also known as CDFI. It is kept as secret and only few people know this. CDFI is an official program from the government and it is available on underserved areas mostly. You should find the list of their offices and find out if you will find them near you. It is a powerful source with affordable credit.
If you do not have enough saving to start your own small business, it is fine. Those sources are agreeable and great to finance your new business. If you count carefully and measure the possibility and related factors, you will be able to make decent decision. Good luck!
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