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Where to find money and start your business?
If you are starting or running a new business recently, what will be better than a start-up capital or financial support? But where to find it? How to use it?
Here are some examples:
Personal Savings. The truth is most startups are funded with personal savings. Before you make a big withdrawal, however, I recommend that you have at least a year’s worth of fixed living expenses (like your mortgage and insurance needs) set aside.
When you’re starting your own shop, you may have to forgo a salary for a few months, even a year, until you gain traction and income starts flowing.
Friends and family. If you’ll go this route, be clear about the terms and put everything in writing, so no bad blood arises.
Banks. Banks are not always easy to crack when it comes to small business lending. It goes without saying that you’ll need a firm business plan and a squeaky-clean credit record to get approved.
Angel investors and venture capital firms. Getting financing from them can be a high-wire dance. But if you can do a little soft-shoe and have a great idea and terrific business plan, these types of investors will back you in exchange for equity or partial ownership.
Economic development programs. There are a range of development loan programs out there, but finding one you can tap might take a little sleuthing and you may need special certification to qualify. For example, if you’re a woman, you might consider getting your firm certified as a woman-owned business. If you’re the principal owner and from a minority group or are located in an economically disadvantaged region, you might qualify for a special loan as well.
Home equity loans. If you have substantial equity built up in your house and a credit score well above 700, this route may be a pretty good option. The funds are usually taken as a lump sum that you can pay off over time. And interest is not sky high, roughly 4.5% right now.
credit unions. It’s a good idea to seek out one that offers credit line for your business. For example, the credit purchasing card - GTCP Card, supported by one of the leading global trade service platform in China, provide global buyers solutions to buy now and pay later. It does make the cash flow.
If you want to go this route, check out eGTCP.com for a list of cards with the lowest rates and best terms.
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