Creative Business Financing Tips

Acquiring business financing is one really challenging task to accomplish. Gladly there are several articles online which can really help us have some ideas on how creatively we can acquire financing for our business.

While traditional lenders and banks have been sticking to their strict underwriting guidelines there are several creative business financing options that may just help get you the funds you need.

Before getting into the details let me be the first to remind you that separating your personal credit from your business credit should be your primary goal. If you’re at the early stages of building your company’s credit file then you may have to use your personal credit to secure financing until your company becomes creditworthy.

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Things You Should Not Do in Getting Business financing

You might be looking for some advice on how to present yourself to get a business financing. As there are ways on how to present yourself, there are also ways that you should not do. These are as follows:


1) Incomplete and Not Honest Answers


When answering questions, you are actually boosting your credibility. If you want to ruin your credibility, simply give evasive and not honest answers. Do not hide things, even if it may compromise the possibility of getting the financing, you must lay all information for your lenders. Whether good, bad or ugly, you must disclose everything. The lenders will surely appreciate. Do not appear as if your business is perfect because there is no such thing as perfect in business and your lenders are aware about this fact. So be real, be open and be willing to show all.


2) Not Concerned with the Commitments


If you want to discourage your lenders, do not follow your commitment. If you have agreed to meet on a specific time, date and location, be sensitive enough with this information. It is unprofessional to not to attend to your commitments based on the agreement.


3) Careless and Unethical


You must present your information with care and with ethics. When the information is sloppy and unprofessional, it only shows that you are not being prepared with the presentation. This will give impression to your lenders that you are not serious with what you are doing and this is a big disadvantage on your business image.

Obtaining Business Financing Tips

I am not going to talk about the documents and other papers you needed to obtain business financing. The basic requirements are not limited to business plan, marketing strategy and business credits credibility. Aside from these, you also need to consider things like industry, sector, and geography.

When applying for business loan, you must also qualify the lender. While it is true that the lender has all the right to qualify the borrowers, it is also important that the borrower must qualify the lender. You must find out if the lender has good records and programs.

You should also consider your options. Make a list of your business financing options and several financing strategies. Take time to compare before making a decision.

As much as possible, you start today. You should not only invest money but also invest time to stay on top of your business financials. Always monitor your credit and research for financing sources that you think that best suit your industry.

Advertising-Key to get the Right Startup Financing

To get the right startup business financing is way difficult than financing a more established business. Lenders are skeptical for newly sprout businesses because they are not sure if they can get their money back from you. To get approved for that loan, all you need to do is to conduct proper advertising.

Advertising is not limited to exposing your business to the public but also exposing your business to your lenders. Have everything in place when it comes to the future plans of your business and slap it out to the face of your lenders, well not literally. Get a solid business plan because this will greatly convince your lenders. Forecast your expenditures and project your profits and include these in your business plan. Get a good credit rating because this will also help to boost out your business credibility.

Ask ideas and advise when filling a business loan. A single mistake should not be tolerated, or else say goodbye to your financing. Be prepared with a series of interviews and bring out the best of your business. Advertise your business, and of course your spectators don’t want to have a lousy advertisement. You are just like doing a commercial in front of your lenders, and your financing grant is all depend on how you are going to advertise your business to your lenders.

Precaution on Venture Capital

According to wiki, Venture capital (also known as VC or Venture) is a type of private equity capital typically provided to early-stage, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. It is typical for venture capital investors to identify and back companies in high technology industries such as biotechnology and ICT.

Venture capital is for high potential growth companies, usually in the technology industry. Venture capital firms typically pool the funds of wealthy investors and institutional investors. While there is no set limits on the amount that a venture firm will invest, it is usually between one and two million dollars. This type of funding usually goes to a business that is already operating and showing some early promise. As venture capital firms become involved in your business, they will certainly take an active role in management and be looking to maintain seats on the Board of Directors.