Small Business Financing 1-2-3

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Business Financing & Loans

In a struggling economy, it may not be as easy to get a loan with your local bank, especially if you have bad credit. However, if you need financing to start your business or grow it bigger, there are lenders out there willing to help you with funding.

Whether you need money to purchase equipment, pay down debt, fund new projects or something else, America One Funding is a great resource for small and home-based business loans and financing.

Small Business Financing is Changing:

I'm hearing all over the news that business credit cards are the new small business loans. Some business credit cards are even offering attractive short-term low interest financing that you can use to launch your start-up. Even if small business financing is tight in today's economic climate, you still have options to start your business, and you can always start small and grow your company over time.

In addition, American One Funding offers multiple financing options (Business Loans up to $5 Million as low as 7.93% apr) for small businesses and entrepreneurs. They make it easier to obtain financing even in a "finance-challenged" market. You can even apply online, get a loan quickly and easily and have money in your hands before you know it. (Canadian Residents: CitiFinancial Personal Loans up to $15,000)

 

Small Business Credit Cards

Business credit is essential for any small business. When you start your company, you want to establish credit, no matter how small. A business credit card is an easy way to do this. Over time, you can grow your credit limit and rating. This will enable you to get financing for your business down the road when you're ready to expand your operations or even at an unexpected time of need.

Look for a business credit card with a low interest rate and multiple benefits, such as purchasing discounts or reward points. Whichever credit card you decide to get, use it exclusively for business purposes. You want to keep personal and business finances separate. If you can, accountants generally advise that you put your business credit card under your business name so that you don't lower your personal credit score or complicate an audit.

Find the right business credit card for you >> Low Interest Rate Credit Card Finder

Small Business Grants and Micro Loans

Are you interested in finding a grant for your business? Grants can be hard to come by, and there are many "government grant" scams out there, so be careful. According to the Small Business Administration, the Federal government does not provide grants for starting or expanding a business.

Yes, state and local groups do offer grants, as well as non-profits and other organizations, but this is generally not "free money". Keep in mind that a small business grant may need to be combined with other financing or funds matched.

Business.gov has a small business grant/loan/financing search tool on their website that you can use for free to help you find money to help finance your business: Grant, Loan & Financing Search Tool for small businesses.

If you need to find a grant writer, Allied Grant Writers is a Better Business Bureau Accredited Company that offers business grant writing, non profit grant writing and federal grant writing services. They also write mini grant proposals and offer several other grant related services.

Microfinance and Micro Loans

Another opportunity for small businesses to obtain money is through a micro loan. Micro loans can provide start-ups with needed capital, and they can also be used by existing businesses to grow operations. Micro loans can sometimes provide solutions for entrepreneurs with poor credit, those without collateral and people who don't have a stable income or are unemployed.

Microfinancing can be easier to obtain than the traditional bank loan and can be used for a variety of purposes. However, borrowers may be required to go through business management training in order to qualify. If your business provides employment for others and/or improves the quality of life for those in low-income areas, you may also have a better chance of getting a micro loan.

The Small Business Administration (SBA) is a government organization helps small businesses unable to get loans through normal lending channels (including special interest loans, micro-loans and secondary market programs). To find a non-profit lender in your area, go to www.microenterpriseworks.org.

If you are a start-up business, you can apply for unsecured start-up loans to $150K online with America One Unsecured. Accion specializes in microfinance within the USA. A limited number of credit unions offer small business loans. As long as you are a member, you can apply, but be well-prepared. Since credit unions are owned by their members, they obviously want to minimize risk and carefully review loan applicants.

Tip: Put together a business plan to make it easier to get financing. Microsoft also has a free letter you can download from their website called "Bank Loan Request for Small Business".

Small businesses can also find capital through the Receivables Exchange, a global institute of international investors to whom small business owners can sell their receivables in exchange for working capital to grow their companies.