“I need financing for my business; where do I start?”
The answer can depend on where your business is in its life cycle, according to The Tennessean. If you are a startup, the answer is often friends and family. This is the No. 1 source for financing of new businesses, and often the long-term results are superior. Many successful businesses started with very little initial financing and without fancy amenities.
Traditional financing through a bank is available for businesses that have a solid track record and can show that they have good growth opportunities, but it is difficult for most new businesses to obtain. Banks will require several things to finance your business, including:
1. High credit score by the owner(s).
2. A solid business plan.
3. Collateral to ensure payment of the loan.
4. Owner investment in the business. They also like owner experience in the industry.