You took out a U.S. Small Business Administration loan to grow your business and had every intention of repaying it. But you've experienced some hardships and sales are weak. You can't make payments and are now facing an SBA loan default, which would likely spell doom for your business.
Financial tools and management
As with almost every aspect of our lives these days, the internet has made it easier, faster, and more convenient than ever for small business owners to gain access to financing, submit business loan applications, and get cash in hand to pursue their goals. Even so, when it comes to something as important as financing your small business, the easy, fast, convenient way won't necessarily give you the best results.
Business owners who sustained substantial loss from Hurricane Harvey should treat reopening their business like starting up for the first time. Whether the business owner gets funds through the Small Business Administration, a bank loan or their savings, reopening will take planning and capital. Lack of these is the reason behind the majority of small businesses that fail, said Joe Humphreys, University of Houston-Victoria Small Business Development Center executive director. "It's like starting all over again," he said. "They may not have the same employees.
As you navigate business financing, it may be tempting to use your personal finances to help out when your business needs a boost, but that is not always the best solution in the long run. Separating your personal and business finances can help ensure you treat your business like the independent entity it is, while safeguarding your personal finances.
Many small businesses involve food. The baker, the butcher, the coffeecake maker and the farmer-in-the-dell are all likely to be small businesses.
But as small businesses, most of these food-related companies have the same problem: how do their owners get the cash they need to buy supplies before they actually make sales?
For most businesses there are two types of financing: debt and equity. Debt financing is a loan. The lender gives you money and you promise to pay it back with interest—the cost of borrowing the money. Equity funding means selling a piece of your business. An investor gives you money in exchange for owning a piece of your company.
When it comes to equity funding, women and minority owners have historically had a harder time accessing capital. Luckily, there are a growing number equity firms looking for women-led businesses to fund.
When it comes to equity funding, women and minority owners have historically had a harder time accessing capital. Below are some of the groups looking to change the status quo.