Sources of Business Finance
Remember the famous line from the movie Jerry Maguire where Tom Cruise is screaming “Show Me the Money!”
If you’re sick and tired of using your personal credit cards and hard earned savings to fund your business you’ve come to the right place.
Could you use additional sources of financing for your company?
Great! In this post I’m going to “Show you the money!”
The good news is there are plenty of great sources of business finance for your company and in this post I’m going to name a few.
First things first. You don’t want to be among the sixty five percent of business owners who use personal credit cards for business expenses. By co-mingling personal credit with business you jeopardize the protection of the corporate veil and put you and your personal assets at risk.
So from now on treat your business as a business and that means total separation between you and your company.
Now that we covered that let’s move forward.
One of the largest and most readily available sources of business finance in America today is business to business financing. You may be familiar with other terms such as b2b financing, supplier credit, trade credit and/or vendor credit.
This type of credit allows a business to conserve its cash flow by deferring payment for products and/or services the company needs on terms such as net 30, net 60 or net 90 days.
Don’t underestimate the power of this source of business finance because it can provide your company with the short term financing it may need. Expenses such as web development, marketing, office supplies, printing, etc. can all be obtained with trade credit.
Other major sources of business finance are business credit cards. This type of credit allows a company to have much more flexibility on the use of credit available. Not only is a company able to carry revolving debt but many cards come with various perks, rewards and incentives.
Ideally, you should only obtain the best business credit cards; the ones which protect your personal credit ratings by reporting solely to the business credit agencies.
Another source of business finance are business charge cards. If you are concerned about carrying revolving debt then consider this type of card since it doesn’t allow you to incur debt.
Did you know micro loans have recently become popular among financial institutions? These small loans ranging from $25k to $50k have become a popular program for small business owners.
You may also want to consider some creative online funding programs such as crowd funding or even social lending networks such as Prosper or Lending Club.
These are just a few of the many sources of business finance programs available for small business owners today.
Looking to build business credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free business credit building audio seminar ($597 value) =>
To Your Success In Business and in Life!
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About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, and All Business.com .His articles and blog; Business Credit Blogger.com, have been featured in ‘American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’. You can also find Marco on Google+.