Financing your business

On my past blogs, we discussed restaurants,manufacturing, retail, etc. Maybe, today,we should look at financing these businesses. I have seen a lot of start ups using credit cards. That could be 15% to 20% money. Very expensive indeed! To know what you will need, you must create a business plan. This is a break down of what your business is, where it will be located, what it will cost to start, and/or keep it running. You will need a break down on cost and a use of funds (what you need the money for). All this is called an Executive Summary. Any bank  or commercial lender will ask you for this. One of the most important parts of this summary is how you are going to service the debt (pay off the loan) and are you experienced in the business you want to start. This is your" business plan", do this first! Now that you have gotten this done, what's next? Where to go for money. At one time your local community bank was the place to go but not today.  They are under government scrutiny, only the very best qualified borrower can get money. This means great credit(750+ scores), a large bank account (5 to 6 figures), plus a lot of assets. Getting money has become very tough. A better place to go is a commercial lender or broker who specializes in this type of lending. There are government programs to help. SBA,( small business administration) insures loans made by these commercial lenders. 504, 7A, etc. are some programs. These programs have better terms and are easier for you to live with. I have worked with them for 30 yrs. I can help get you set up. I hope this helps.


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Your Business Guru
John
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