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Site Home –› Business & Commerce –› Small Business Enterprise
 

Small Business Money

 
Author: Kurt Mortensen

Many new entrepreneurs quickly discover that raising capital may not be easy and can be a complex and frustrating process. However, if you are informed and have planned effectively, raising money for your business will not be a painful experience.

There are several sources to consider when looking for financing. It is important to explore all of your options before making a decision.

  • Personal savings: The primary source of capital for most new businesses comes from savings and other forms of personal resources. While credit cards are often used to finance business needs, there may be better options available, even for very small loans.

  • Friends and relatives: Many entrepreneurs look to private sources such as friends and family when starting a business venture. Often, money is lent interest free or at a low interest rate, which can be beneficial when getting started.

  • Banks and credit union: The most common source of funding, banks and credit unions, will provide a loan if you can show that your business proposal is sound.

  • Venture capital firms: These firms help expanding companies grow in exchange for equity or partial ownership.

It is often said that small business people have a difficult time borrowing money. This is not necessarily true. Banks make money by lending money. However, the inexperience of many small business owners in financial matters often prompts banks to deny loan requests. Requesting a loan when you are not properly prepared sends a signal to your lender. That message is: "High Risk!"

To be successful in obtaining a loan, you must be prepared and organized. You must know exactly how much money you need, why you need it, and how you will pay it back. You must convince your lender that you are a good credit risk.

Terms of loans may vary from lender to lender, but there are two basic types of loans: short-term and long-term. Generally, a short-term loan has a maturity of up to one year. These include working-capital loans, accounts-receivable loans and lines of credit.

Long-term loans have maturities greater than one year but usually less than seven years. Real estate and equipment loans may have maturities of up to 25 years. Long-term loans are used for major business expenses such as purchasing real estate and facilities, construction, durable equipment, furniture and fixtures, vehicles, etc.

Author Bio:

Kurt Mortensen

Kurt W. Mortensen is one of America's leading authorities on persuasion, motivation and influence. Kurt spent 15 years researching personal development and motivational psychology and is currently a professor on the university level. He offers his speaking, training, and consulting programs nationwide, helping thousands achieve unprecedented success in business and personal endeavors. Kurt is author of Maximum Influence, an Amazon.com bestseller and is endorsed by Stephen R. Covey, Brian Tracy, Robert Allen, and Mark Victor Hansen.

?This is truly remarkable information,? said Dr. Stephen R. Covey, Author of The 7 Habits of Highly Effective People. ?It is based on solid scientific research and extensive field experience. It contains unbelievably comprehensive and fresh new angles and insights to persuasion, using immensely practical examples.?

"This is a great,? said Brian Tracy, Author of Advanced Selling Techniques. ?Magnetic Persuasion shows you how to immediately influence and persuade other people in every area of your life."

Mortensen received a bachelor?s degree in Communications/Advertising from Brigham Young University in 1992 and an MBA in Marketing and Consumer Behavior from the University of Pittsburg in 1993. He presented on the speaking circuit with Brian Tracy, Dennis Waitley, and Les Brown.

He teaches that success in every aspect of life depends on the ability to persuade, motivate, and influence others. He combines scientific research with real-world studies to provide the most authoritative and effective arsenal of proven techniques for persuading, influencing, and motivating others.

?Kurt has provided the most complete work on persuasion and influence I have ever read,? said Robert G. Allen, Author of Nothing Down, Multiple Streams of Income, and The One Minute Millionaire. ?Nowhere in persuasion literature have I ever seen the art and science broken down into such thorough and easy-to-understand concepts, covering every aspect of persuasion imaginable.?

You can search for this article using: small business, small business opportunity, small business online assistance
 
 
 

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