Business Plan Financing

This is common in the sale of stock to a limited number of investors or participation by venture capitalists.The sale of stock is highly regulated by state and federal agencies and you will need the help of a corporate lawyer.

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If you haven't started already, start now to begin accumulating cash through personal savings.

Also, don't overlook the Small Business Administration (SBA) loan guarantee programs available for start-up businesses.

Some key variables as to what kind of loan terms you can get are You are most likely familiar with a straight loan (debt) where the lender gets an interest rate and fees.

Equity is where the money raised gives the investor an ownership interest.

You will learn how to locate, negotiate for, and maintain sources of money to help you start and expand your business. But don't try going to a bank to get it when you've just started in business.

Banks normally make loans only to businesses with operating histories.Generally, a FICO score above 680 will produce a positive response while a score below this will cause a lender to be cautious.Before seeking financing or credit, it is a good idea to know where your FICO score stands.Unsecured Loans Some credit is granted on an unsecured basis, such as credit cards, but most small business loans are secured by the assets of your business, your personal assets, or both.Unsecured means that there is no collateral granted for the loan.Money makes your business go, and usually banks make loans only to businesses with operating histories.In this session we will give you some alternatives, strategies, and things to think about in your search for financial help.With a SBA guarantee program in hand, your bank will be happy to talk with you!Finally, start your search for financing with a good credit rating.Normally the initial sale of stock to the public (initial public offering or IPO) is deferred until an earnings history is established.Sometimes such a discussion arises with friends and family who want to be your partner.