Question
How to finance a small business?
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3rd Dec 2009 by Gary
Since no bank will lend money to someone starting a small business (unless you have such a high credit rating and balance sheet that you could finance it on your own anyway), the major way people finance a small business in order to launch it is through credit cards or a home equity loan. If a business is already operating, many times the business will secure a credit line with the bank so they can tap into it as short-term needs arise. Businesses with good relationships with their vendors or suppliers also make loan deals to raise cash to expand.
Since no bank will lend money to someone starting a small business (unless you have such a high credit rating and balance sheet that you could finance it on your own anyway), the major way people finance a small business in order to launch it is through credit cards or a home equity loan. If a business is already operating, many times the business will secure a credit line with the bank so they can tap into it as short-term needs arise. Businesses with good relationships with their vendors or suppliers also make loan deals to raise cash to expand.
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21st Oct 2009 In Finance
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