Financing for Small BusinessRobert Smith

Contents

• What is Financing

• Difficult to Get Finance for Small Business

• Creative Ways for Financing Small Business

• Conclusion

What is Financing

• Financing is the way of providing theworking capital for the business.

• Financing means a way of lending moneyfrom any of the financial institution.

• It is the field that deals with allocation ofassets and liabilities.

• There are different areas of finance i.e.personal finance, corporate finance andpersonal finance.

Difficult to Get Finance for Small Business

• Getting small business finance is one of thehardest thing.

• Small business does not have perfect creditthat creates problem in getting smallbusiness loans.

• The main reason is that banks thinks thatlending small business is the most expensivetask.

Creative Ways to Finance Small Business

• Small Business Administration loan : SBA offersloans offer two types if loans i.e. one forentrepreneurs and other for small businessloans.

• Product Presales : Selling products is aneffective way to raise finance for small business.

• Home equity loan : Equity of homeowners – thehome value – what you owe. Home equity oneof the best option for small business loans.

Contd..

• Selling Assets: Selling the assets to raisefinance are also good options.

Conclusion

• Financing is one of the challenging obstacles that any entrepreneur face while starting up the company.

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