[product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-money” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Bank Loans”]Taking out bank loans is the traditional method to finance a business. However, banks are employing more and more conservative lending practices, making it tougher for new businesses to get the financing they need through bank loans. Banks require that business owners furnish a financial operating history for their businesses when applying for loans, which makes this method of business financing nearly impossible for emerging entrepreneurs. In fact, less than 40% of all business loan applications are approved by banks – and that includes established companies.[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-money” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Credit Cards”]Many startups use credit cards to finance a business. This is a very risky method for business financing, as it places personal finances on the line, and being unable to make a payment in a given month can trigger very high interest and penalty fees. Most financial experts advise entrepreneurs to apply for business credit cards as soon as possible, as they typically have higher spending limits and relatively lower interest rates, and use those for short-term business financing, instead.[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-money” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Crowdfunding”]Crowdfunding is a great way to not only get financing for a business, but also to measure the public’s desire for a company’s products or services. With most crowdfunding campaigns, entrepreneurs present their vision and offer rewards in return for investment money. If the business achieves its financing goal, then it has to make good on any promises and rewards for the various amounts or “investment levels” people donated. On the other side of things, if the final goal is not met, then all funding is returned to the investors, and the business is left seeking alternative business financing methods. Crowdfunding is a big risk, but if a campaign is run in conjunction with other funding methods, it can be a great way to do research to get feedback from your target audience.[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-money” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”SBA Loans”]The Small Business Administration (SBA) specializes in offering advice and financing for businesses. With a variety of loan programs, the SBA has numerous resources on how to finance business operations. SBA loans require that business owners have very detailed business plans – complete with financial projections, budgets, forecasts, market demographics, comparable businesses in the industry, and everything else. The SBA wants to know that business owners have thought out their ventures before they consider approving them for business financing. Keep in mind that every SBA loan has its own requirements, and all terms must be adhered to strictly, otherwise it might incur hefty penalties on any business financing loans.[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-money” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Micro Loans”]For businesses that do not have the established credit or financial history, the SBA, as well as many other commercial lenders, offer micro loans. Micro loans are a form of finance for business operations that need money ranging from a few hundred dollars to a few thousand (under $40K). Micro loans are ideal for financing business operations that are run out of a home office or kiosk. The rates and terms for micro loans are typically more flexible than traditional bank financing for business organizations, and they require less documentation for approval.[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-money” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Asset Based Financing”]A very popular method for financing business operations is to use asset based financing. Asset based financing is not dependent on credit rating or financial history, but rather assets like equipment, property, and receivables. Most lenders will give asset based funding as a percentage of the overall value of the assets a business has. This is a very attractive option for new and emerging business owners who need extra working capital in those crucial months after launching.[/product_feature][product_feature title_color=”#be9f2a” title_font_size=”22″ description_color=”#555555″ description_font_size=”14″ icon=”fa-money” icon_color=”#ffffff” icon_bg_color=”#1a398b” icon_size=”22″ title=”Factoring”]Much like asset based lending, factoring is a way to finance a business that does not hinge upon the company’s credit rating for financial history. Factoring is based on unpaid customer invoices. In most businesses that do not use a point of sale, customer invoices are generated with an aging period ranging from 30-90 days before any payments need to be made. With factoring, business owners sell their unpaid customer invoices at a discounted rate for immediate cash. Since cash flow is crucial to a new business, waiting for payments from customers can cause a financial strain that can bring operations to a halt. Factoring removes the waiting period and provides the financing a business needs to not only maintain operations, but to grow.[/product_feature]