Business Financing

Business Financing questions and answers

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Q: Business Financing?
I have a business that is in Formation and I need financing in the amount of 100K. I can not refinace my home. I do not have retirement to pinch from. Where can I go with little to no assets to get financing for my start up business?

A: talk to the small business administration. they will help with loans. also try applying for grants. you know the guy with the big bood and the question mark jacket screaming about free money on tv? he's for real, check out his book. also see if your town has funds to distribute thru what is called a "tiff" fund, basically the town is given money to give to its new businesses!

Q: How do I find sources of Business Financing?
I am looking for ways to find small business financing. I am not looking to borrow 100K+. I want to only borrow $25,000 to grow my company. I am not look for VC sharks or loan sharks. My experience is that the SBA is nothing but red tape. Anyone have any ideas? My company is profitable (about 7,500/month NET) and it's based in the Philippines.

A: Opt for applying for specific loans in your search. For example, if you need office equipment or other equipment, seek equipment financing or leasing from companies that specialize in those areas like this one, popular in the field: Crest Capital http://www.crestcapital.com/Catalog/ (their catalog of financing types) Free Instant Calculator Tools to get figures right now: https://www.crestcapital.com/equipment_lease_calculator Free easy online app: https://www.crestcapital.com/Primary/Application/OAStep1.aspx

Q: Is there small business financing available that will not effect you personally if your biz if it goes under?
I want to open an ice cream shop in my area but I do not want to put my house up for collateral in a loan or if the business goes bankrupt for the lender to be able to come after my personal assetts. Is there financing available? Or anyone know of grants to open a shop.

A: Slim to none.

Q: Where can i get startup business financing ?
how can i get financing to start a business all banks require minimum 2 year old business to give a loan no one give a loan for new business does someone knows a bank who gives a startup business loan ? the thing is that i just turned 18 so i dont have credit history i want to get loan under my mom's credit she's credit score is 670 i think so its also a problem because the banks require exelent personal credit 670 is not exelent and the thing is that i need just 20,000 to 30,000 the banks give loans for up to 100,000 i cant get just 30,000 from them what to do ?

A: Banks generally aren't in the business of loaning start-up capital. What you need to find is what is known as an "angel investor". Angel investors are private individuals or groups who loan start-up money, usually in exchange for a piece of the business. To get an angel investor interested in your business idea, you need to have a rock solid business plan. I would suggest that you visit StartUp Nation http://startupnation.com They have forums with lots of information on preparing business plans and soliciting money from angel investors and other sources. Good luck with the venture!

Q: What are the top ten schools for Business,financing, and marketing?
What would you recomend the top ten schools for business, marketing and finacing that will help me get to the top.

A: top ten I don't know. Wharton is the best.

Q: Where is the best place to get small business financing?
I just started a landscaping business about a year ago. I ran into very hard times in the fall and got behind on my payments which really screwed up my credit. Now I am full with jobs for almost this whole summer but I need a loan to combined all my loans into one to make it easier to make the payments but I can't get a loan with my bad credit.

A: SBA - The SBA provides short- and long-term loans to eligible, credit-worthy start-ups and existing small businesses that cannot obtain financing on reasonable terms through normal lending channels. Note, however, that SBA does not provide direct loans. Rather, the agency provides guarantees to loans availed through SBA's partner lending institutions, which includes many community banks. The applicant must satisfy the lender's requirements before he or she can ask for a guaranty from the SBA, unless the borrower is deemed prequalified based on the person's character, credit, reliability and experience (prequalification is for loans $250,000 or less). Read SBA's qualification requirements: http://www.sba.gov/financing/preparation/requirements.html

Q: Does anyone have any information regarding small business financing?
I am trying to buy into a franchise with a friend and my husband. We have a 4 year old bankruptcy and are looking for less than $100,000 to open. The problem seems to be that there are no tangible assets in the type of business that we are looking to open. Are there any suggestions of lenders that may be willing to loan or a direction that we should go toward? Any suggestions are greatly appreciated.

A: I don't know who might be a good source of financing on this deal, but here's a source that may very well be able to point you in the right direction. And if you do decide to open this or any other business, they can provide a wealth of great information on how to do so. Service Corps of Retired Executives (SCORE): A national organization sponsored by the Small Business Administration (SBA) of over 13,000 volunteer business executives who provide free counseling, workshops and seminars to prospective and existing small business people. There are 389 chapters nationwide. For more information, call them at 1-800-634-0245 or visit their web site at: http://www.score.org

Q: How do i get financing for my business in Africa?
I own a business and im looking for financing,cheap financing and africa doesnt seem to have it.Are there Africa focused business angels out there?

A: You should go to Prince Akeem of Zamunda and ask him to loan you some money.

Q: I would like to open a fun center in my city. How do I go about planning and financing a business?
Currently, a person would have to drive 45 minutes to take their kids to a place that has go-karts, games that distribute tickets, mini-golf and so on. I would like to look into openeing a business such as that lacally. I have no clue how to go about getting financed or how to plan the business...or even where to start. I have heard that the government has loans specially for women. Can anyone point me in the right direction to plan for a business?

A: Go to your local Chamber, they should be able to help you with everything you do. First and foremost. Write a Business plan.

Q: Buying a vehicle for my business - cash versus financing, and how much may I use it for personal use?
I own a six-month old single-owner LLC, which I operate out of my house. I want to purchase a car to use for my business. My company is a telecom-consulting business, so the primary use for the car would be to drive to client appointments and to take packages to the local shipping store. I typically don't do much personal driving during the week after business hours. I am not sure if I should pay cash for the car, or if I need to finance the car. Which is a better write-off? My wife has her car, and we use it primarily for family functions. So, how much could I use the company car for my own personal use without the risk of doing something illegal (tax-wise)? My wife would probably never use the car, even though she is technically an employee.

A: As with many things, don't be blinded by the tax implications of the decision. Tax impact needs to be considered of course, but should NOT be the overriding consideration. It's just one of many factors. Although you can take a business expense for the finance charges, the the total out-of-pocket cost for financing will still be higher even with the tax savings. The highest tax bracket is 35% but most taxpayers will see savings of 15% - 28% at most. From that standpoint, paying cash will make more sense. However, other factors come into play, not the least of which is your cash-flow. Paying cash ties up capital that maybe could be better used for other business development. This is something that is often overlooked by the novice. If you wind up having to take out a loan for other business purposes as a result of paying cash for an expensive asset you may well wind up paying a higher interest rate for an unsecured loan or having to guarantee it personally -- other things to think about. If cash-flow is a consideration and ease of bookkeeping is a factor, leasing a vehicle may be just the way to go for a business vehicle especially if you can accurately predict your mileage requirements. Leases usually SUCK for the average wage-earner but are often an excellent option for business use. Resist any temptation to use the business vehicle for personal use, especially if you take a Section 179 deduction for the full purchase price. You don't have to account for business vs personal use, keep mileage logs, or other tedious bookkeeping tasks. If you own other vehicles for personal use, the IRS won't question your claim of 100% business use; just play by the rules and you'll be fine. If your wife uses the business vehicle for business use, that's not a problem. But if she hauls the kids around or goes shopping with it -- or if you do -- you're risking having its use challenged. Bending the rules occasionally probably won't trigger an audit, just don't let it become a habit.

Q: What are the methods of financing your own business I was thinking VC's but I need details?
ALSO why do VC's provide financing at all I mean say you need money for your business and I give it and I want a 51% stake in the company as the venture capital firm but I am PAYING FOR THE WHOLE THING how does this help me?

A: I've always financed things with the local small bank as they give the best terms. There are now some finance companies backed with wall street money but their terms will be in between bank and VC firms. The answer to your second question is purely R.O.I. or RETURN ON INVESTMENT. If a VC firm lends $50,000 that returns $25,000 a year to them, why wouldn't they do it? They realize there are plenty of entrepreneurs out there with great ideas and they want to piggy back on your success. These people have money, but they need your ideas, and you'll also be doing the work. They are just lending money, and they can't make much lending it out in the traditional fashion like banks. If you start the next Yahoo or Google they don't care how much money you make as long as they make it right along with you.

Q: the impact of mutual funds on the financing of small business?
it is a long eassy or percisely a project work. how "credit unions" finance small business in the abscence of commercial banks

A: I'm confused. Are you talking about mutual funds, small business, credit unions, or commercial banks and/or their relationships?

Q: Where can I learn how to do the Planned Financing section of business plans?
I'm doing a business plan competition in high school. My partner and I created a fake business, and we need help with the planned financing section. In this section, we need to include: 1.) Projected income statements by month for the first year's operation (sales, expenses, profit/loss) 2.) Projected cash flow for the first year 3.) Projected cash flow by month for the first year's operations 4.) Projected balance sheet, end of first year 5.) Projected three-year profit/loss statement I do not know much about this area of business. Where can I learn about it so I have the information accurately and logically displayed in the business plan? Any resources either online or from a library (specific references please) would be welcome. Any help would be much appreciated. THANK YOU VERY MUCH IN ADVANCE!!

A: Did you consider asking your project guide with help on completing this section or the librarian of your school. He/she would be the best person to guide you on this.

Q: Is it possible to recieve full financing on a small business loan?
I'm looking to start a clothing retail business in about one year, and by then I'll have about one year's worth of credit (about to turn 18) history. Right now, I figure I'd need about 200k to get it up and running. My question is would it be possible at all to recieve full financing or should I take out student loans, invest them in the market, and use that for a down payment? Thanks in advance. Oh, and no bull**** solicitors either, I am not looking for a loan through Joe Schmo, the internet crook, I would just like to know how it can be done legitamentley. Thanks again.

A: First of all, your credit history will not be lengthy enough. Three years of solid credit will be better. Second. banks and lending institutions want you to have about 30% or more equity in the transaction - meaning they will lend you about 70% or less. You'll need a very sound business plan. If you take out student loans to try to fund your share of the transaction, they'll show up on your credit history, they'll reflect on your borrowing power and banks will not want to lend you more. If you have a really good idea, your best bet would be to find a well financed partner who'll provide the starting capital and negotiate a partnership and go from there. Since this is your first business venture, try this link : http://www.ychange.com/small-business-consulting-articles.html and read some of the articles especially the ones about a business plan and starting a business. Good Luck

Q: How can i arrange financing to expand my own business?
Need to expand my existing small manufacturing business. We manufacture Shock absorber components in India. Looking for opportunities to market the components here in USA. Do you know who are major shock absorber manufacturers in USA and what approach can i take to solicit business from them. How can i get financing to expand my business further

A: For money: - Partners - Banks - Venture capital Tenneco has Monroe autoparts division. I believe they are the largest shock company in the US.