Archive for January, 2009
Raising capital is the most basic of all business activities. But as many new entrepreneurs quickly discover, raising capital may not be easy; in fact, it 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. This guide focuses on ways a small business can raise money. 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 out in a business venture. Often, money is loaned interest free or at a low interest rate, which can be beneficial when getting started. Banks: The most common source of funding, banks, 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 be able to convince your lender that you are a good credit risk. You may freely reprint this article provided the author’s biography remains intact: John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website. Tags: business finance, finance business, small business financeAs opposed to common belief, getting a motorcycle loan is just as easy as getting any other kind of loan. Even easier than getting a car loan, motorcycle financing is available to anyone with good credit or bad credit as long as they have sufficient income to afford the monthly payments and any additional costs. Shopping Around Before Buying The secret of getting a great deal is not to rush in. It doesn’t matter if you are told “this offer is only valid for the following 72 Hs.” If a lender says that, you should know that they are just trying to hasten your decision so you can’t go looking somewhere else where you’ll probably find a much better deal. If it was really such a good offer they wouldn’t be so anxious to close on it. Moreover, searching for the right lender will not only get you the lowest interest rate but you’ll also be able to get better deals on your loan length and other terms like fees, costs, repayment schedule, loan installments, insurance, etc. Sometimes, in order to offer a low interest rate, lenders conceal within a loan contract many hidden fees and costs or other loan terms that can turn the loan even more onerous than if you agreed to a higher rate loan. Variables that Affect your Loan There are many things that can affect the loan terms you’ll be able to get: The amount of money you request, the loan length you desire, your credit score and history, your income, your income to debt ratio, etc. All these variables are linked and will ultimately determine the interest rate you’ll have to pay. Sometimes saving some money for a down payment instead of asking for large loan amounts that imply 100% financing of the vehicle can save you a lot of money on interests. The same goes to committing to repay the loan on a shorter term or improving your credit score before applying for a motorcycle loan. Reducing your current debt or waiting for your income to raise a little, won’t only boost your chances of getting approved for your desired loan but it will also reduce the interest rate you’ll have to pay which can save you thousands of dollars over the whole life of your motorcycle loan. Where to Find the Right Lender The best way to find a lender willing to finance your motorcycle purchase with a good rate is to search for lenders online and request loan quotes. You can even bargain a little with them prior to selecting the best offer. Remember that the interest rate is not the only fact you need to watch closely and you’ll do just fine. Kate Ross is a professional consultant with fifteen years in the financial field. She helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and prevents consumers from falling into financial scams. |
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