Seven Alternative Sources of Capital for Setting Up a Business
Borrowing from banks is every small entrepreneur’s nightmare. One gets turned down for bank loans for a variety of reasons, including lack of assets, collateral and business experience. Don’t despair, however. There are several common types of alternative sources of capital for setting up a business available to young companies.
Savings and Investments
The first source you should consider is your own savings and investments. One disadvantage though of self-financing is that if things did not turn out the way you want them to be it will be your money that goes down with the ship.
Angel Investors
Angel investors are affluent individuals who provide capital for a business start-up, usually in exchange for ownership equity. These individuals are looking for a higher rate of return than would be given by more traditional investments (typically 25% or more). Read more
Personal Loans With Bad Credit – Any Options?
Christmas is around the corner, wild spending defies every logic and bills are being pushed forward, next years resolutions are to cut down on unnecessary goods and to be wise with money.
You fake a smile and try to be merry, deep down you only know how you are struggling to make meets end.
If things were not bad enough, your brother has asked you to lend him some money, so what do you do in such a situation.
Bad credit is a causing you concern because you were just about to apply for a loan.
If you have been a good customer for a long period and the banks have accounts of this, then instead of personal loans with bad credit you might try to look for an overdraft facility or an extension on your existing loan.
How bad is bad credit? Read more
Credit Crunch – Not a Credit Freeze
photo credit: the_toe_stubber
First of all, it’s a credit crunch not a credit freeze!
Sure, banks are more cautious about their lending, but when were they not? The reality is that the majority of banks are lending, and to remain profitable they will continue to lend to small business owners. Those that understand the situation are acting now!
“Buy low, sell high”
With the current economic low, it is the best time to get financing at a low rate, with lower-than-ever requirements. Big banks like Citi and HSBC are making their decisions based on business credit scores, not personal fico’s.
Personal guarantee is a promise made by an entrepreneur to personally repay company debts if the business defaults. It is a way for banks to protect themselves, while reflecting the seriousness of the business owner to repay debts. Without a personal guarantee, they are thought to not believe in their business and are high risk. Small business owners don’t want to provide a personal guarantee if possible. Even if they are diligent about repaying debts, some unforeseen catastrophe may happen preventing a loan payment. Then the bank seizes personal assets. Read more
Strike While the Iron is Hot – Using the Recession to Your Advantage
photo credit: XirannisX en Off
These last few weeks of our economic downturn got everyone wound up. From business owners to CEO’s and back to the consumers – everyone is in a panic about the recession and the bailout plans. But what is a recession, really? How are the bailouts impacting your life?
As consumers we are all hurt. The price increases on all goods and services for which President-Elect Obama is preparing already, will be upon us soon.
However, as small business owners should we think of this as a gain or a loss? Read more
12 Tips to Safely Borrow Money Online
photo credit: HAMED MASOUMI
It is a toss up sometimes if our experiences are going to be pleasant or not. When borrowing money online, you must have some things in mind before you pick a lender.
A customer needs to be informed and ready to ask important questions regarding their transaction to safeguard themselves. There are a few quick and easy things you can do to ensure that your loan application goes smoothly and ensure that you are protected from fraud.
1. Is the Company Real or Just a Website?
Real companies will have a physical address listed on their website. This information should be easily found and not hard to locate at all. Be wary of post office box mailing addresses. Compare the address to a listing in the yellow pages online or call the phone number to make sure it is not fake.
2. Where Are They Located? Read more
Peer 2 Peer Lending – Cutting Out The Middle Man
In the past getting a loan used to be a pretty intimidating process, getting dressed in your Sunday best, looking your best and venturing into town to the bank for a date with the Bank Manager. Once there you used to have to throw yourself at the mercy of the manager and plead for them to lend you money, getting declined for a loan was often a demoralising and embarrassing process.
These days applying for a loan is much more stress-free with the decision on whether you get given the money being based more on details such as your income, credit report and other factors, but still people can get turned down for reasons other than a poor credit record. In light of the recent credit crunch many banks are being more cautious about whom they lend money to and in some cases have ceased offering unsecured loans. Read more
Government Grant Search – Government Grant Search Made Easy
Government grant search is not that hard compared to the days back then. If you are searching for grants, you have came to the right place. In this article, you will be shown all the various sources which you can get hold of a list of government grants that are available for various purposes. Without further ado, let’s get started with all the resources for government grants.
Government Grant Search Resource #1 Government Sites
Government sites such as grant.gov and those related to business and women rights will normally have a list of grants related to users visiting the sites. You can safely assume that all the grants listed there are complete. However, there might be grants that are not declared on these sites due to delays in updating.
Read more
How Does the Government Offer Grants to People
photo credit: brndnprkns
Do you want to know about the government grants? Here, let’s talk about it.
Step1
Most government grants are not available year round, therefore,a grant seeker must apply when a particular grant program is announced by a government agency. When funds are made available, the agency places an announcement in the Federal Register, which is published each weekday. Federal grant announcements are also published on agency websites, many of which now allow grant seekers to submit grant applications electronically. In addition, those in search of grant funds can check out the government’s Catalog of Federal Domestic Assistance for more information on specific grants.
Step2 Read more
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