When you need start-up capital to launch your dream business, you have many options:
- Tap your own savings.
- Borrow from friends and family.
- Borrow from banks.
- Take out an SBA-guaranteed loan.
- Get help from a finance company.
- Use your suppliers as loan sources.
- Obtain capital from private investors.
- Use your credit cards.
But remember, entrepreneurs may need to tap more than one source when seeking financing for a new venture.
Before asking anyone for money, make a careful assessment of the proposed value of your business, the amount of capital you need, the amount you will have to borrow and the length of time it will take you to pay back the loan.
Excerpted from Starting a Home-based Business