New Business Funding

01 Nov New Business Funding

articles-bannerSlide thumbnail


New Business Funding

new business fundingIn times of economic hardship, finding new business funding can be a challenge. There is frequently very little money to loan, and so many people seem like they’re in debt. Not only is it difficult to actually find new business funding, some people are afraid of getting involved in a loan that they won’t be able to repay. Even worse, might eventually be underwater. And while this is all possible, it is nonetheless worth attempting. That is, as long as you’re smart and understand what you’re looking at.

There are many different ways of funding a business. Let’s examine a couple of them:

New Business Funding Close To Home

1. Friends and family – This is still one of the best ways to fund a new business. The reason why is that they tend to be less stringent about lending money and repayment schedules. In fact, you’ll probably get better rates (if they’re charged at all), and it’s a good way to practice pitching your idea in a lower-stress environment. Certainly better than trying to jump right into a meeting with venture capitalists or loan officers. Just remember that you are still borrowing money in good faith, so don’t do so half-heartedly. Pitch your idea the same way you would to anyone else, and make sure your legal paperwork is just as stringent. Not only will this give you good practice, but it’ll also help prevent hurt feelings down the road.

2. Credit cards – The director Kevin Smith, when he was looking for financing for his first film, took out ten credit cards and used those in order to purchase what he needed. He took a risk, hoping that his film would be a success, and it paid off. If you’re using credit cards to help finance your business however, keep in mind that they are for cash flow management. That is to say, not for long-term financing. Keep a couple on hand with no balance on them and use them when you need cash only, then pay them off at the end of the month. It’ll give you a little leeway and can be a great tool to help you get by when you need immediate currency.

New Business Funding That Requires More Effort

3. Bank loans – Banks usually give loans in two forms: fixed amounts and lines of credit. A fixed amount is all your money at once and you start paying interest immediately. Lines of credit tend to be a better option as they give you a maximum you can spend and you only pay out what you need. More to the point, you don’t start paying interest until you actually start spending money. It’s easier to obtain bank loans if you have either assets you can leverage against the loan or guarantors to support you (such as cosigners or an SBA loan).

4. Leasing – Leasing is a sort of alternate business funding method. Rather than outright purchase big-ticket items, you can save money in the short term by leasing them. This includes space, equipment, vehicles, and anything with a significant price tag. While this may end up costing you later, it’s usually worth the gamble at the beginning of starting your company. You’ll be in a better position to purchase later on, and there’s potential to work out deals with suppliers for purchase if you’ve been a good leaser up until that point.

These are by no means the only types of new business funding. In fact, there are even several variations of all of these. The trick is to put together a solid business plan and presentation, speak to a financial advisor or consultant, and keep asking. Sooner or later, somebody will be willing to put up the money you need to get going.



Get some FREE business advice
asked by small business owners.



Find the Government forms and
business links you need

EM Advisory Corp is an Advisory firm that connects with people. Our advice is rooted in our experience and personalized to your needs. Search our site for related Articles. Browse our FAQ’s for Answers and use our provided information and Services to help you solve your situation.

Article Categories



    “I feel like a hero to my Board of Directors thanks to you. Your confidentiality is much appreciated and your suggested changes to our approach with the new structure to handle the referral pass-through have worked so well that we needed to put 5 new associates in place, thank you again.”

    - I. E. W.

    “Your analysis of our current marketing efforts turned out to be spot on. Your suggested changes are already showing results over the last 60 days of running them, thank you, your services are under rated. We will be calling again.”

    - V. B.

    “I thought that putting your company on retainer was a waste of our resources, and time. I have never been so wrong, and so happy to be wrong at the same time. It would be my honor if you would consider a permanent position within our corporation.”

    - Y. N. O.

    “I can’t deny that your services are invaluable. Not one person in my company was able to see our own mistakes. It does take a trusted advisor to look in from the outside and you have been that advisor. Thank you, for showing us a way to identify and correct these issues for the future.”

    - W. T. H.

    “One simple paragraph in our 98-page contract created a lifetime of residual payments back to the Partnership, thank you for seeing it. The statement you made is so true, “attorneys are not businessmen.” We will call you when we prepare for our next purchase.”

    - H. T.

    “The promotion was a complete success. The way you structured it allowed me to deduct the campaign and giveaway expenses from my taxes. The biggest benefit has been the permanent increase in my customer base. Thank you.”

    - Y. B. P.

    “I never thought that the use of a separate website could benefit this section of my business. That thinking was just being out of touch with my own customer base. Our overall transactions have tripled over this last year. Our future continues to grow again.”

    - P. T. B.

    “One month! You changed our direction in a month. I never realized that I was inadvertently forgetting about what has turned out to be a profitable division of the business, and that same division was our problem, to begin with. Your quick analysis gave us the step up we needed.”

    - R. O.

    “Until I saw the numbers with my own eyes, I did not, could not believe what you were telling me. But it is true, you saved me over $600,000 of unneeded advertising spend in the first 6 months of this year over last year. I was most impressed with the fact that we sustained the same revenue, thank you.”

    - S. V.

    “You are correct, everything is a negotiation. I am very glad that you sat on our side of the table with the quite expertise you demonstrated. This sale will allow myself and my family to choose again.”

    - S. M. T.

business advisors


Choose the Services You Need to Discuss
Business PlanNew BusinesseseCommerceNon-ProfitEnergyPresenceFinancial IndustryProductsFinancial ServicesSalesManufacturingStrategyMarketingStructureNegotiationTechnology

No Comments

Sorry, the comment form is closed at this time.