Source of funding

Re: Source of funding

Redc;33197 wrote: I cant believe that so many people use their credit cards - talking about living on the edge

I agree what a bad way to run a business

Re: Source of funding

Scott Brogan;33180 wrote: In the WSJ yesterday they had a survey of small business owners, regarding their source of financing in the previous 12 months:

44% Credit Cards
43% Earnings of business
29% Bank Loan
22% Private Loan
18% Vendor Credit
7 % Leasing

How do these numbers match your business financing?

I wonder how these numbers have changed sinced the credit crisis I bet even more people are taking loans out against their credit card

Re: Source of funding

Much of the money available for doing medical research comes from companies, as opposed to government agencies or charities. There is some evidence that when a research study is sponsored by an organization that has a financial interest in the outcome, the study is more likely to produce results that favor the funder (this is called “sponsorship bias”). This phenomenon is worrying, because if our knowledge about effectiveness and safety of medicines is based on biased findings, patients could suffer. However, it is not clear whether sponsorship bias extends beyond research into drugs, but also affects other types of research that is in the public interest. For example, research into the health benefits, or otherwise, of different types of food and drink may affect government guidelines, regulations, and the behavior patterns of members of the public. Were sponsorship bias also to exist in this area of research, the health of the wider public could be affected.
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Beach Bicycles
debt

Re: Source of funding

Many people avoid loans from bank. I think Credit card is best for using credit money from the Banks.

Re: Source of funding

Hello friends

Yes. Besides being a good source, it will enable the government to reinvest in different sectors that need nurturing and incubating nacent industries.Government by disinvesting in profitable sectors such as aviation and telecom would encourage entrepenurtial growth that will contribute the tax kitty. This will also free government human resources to focus on governance rather than on business for which the civil servants are ill equipped.

Thanks to all friends

Re: Source of funding

There are many source of funding like banks,finance company,cradit card,goverment loan,and many way to get fund.many company provide the sponsor the project.

Re: Source of funding

IN most of business there are definitely many types of sources such as banks, financial companies and many more, and it was found in most of cases many business owners are being used credit cards also.

Re: Source of funding

Your business start under partnership.you get loan from bank and consult any company for business then you collect the funding for your business.

Re: Source of funding

There are many banks and finacial company offer the loans. Many business owners use the creadit cards and partenership and use relationship. But where you get loan it's depending on you business planning and interest rate.

Re: Source of funding

Scott P. Brogan;33180 wrote: In the WSJ yesterday they had a survey of small business owners, regarding their source of financing in the previous 12 months:

44% Credit Cards
43% Earnings of business
29% Bank Loan
22% Private Loan
18% Vendor Credit
7 % Leasing

How do these numbers match your business financing?

This is NOT at all surprising considering, according to CNNMoney.com, that 97% of all SMB Lans are currently being declined. The reality is that most Bank's Underwriting Guidelines require a minimum 720 Credit Score for a Loan application to even be considered. Compare that to an Average US Credit Score of 645 to 685.

When Small Business Loan Money dries up, Banks tend to close their purse strings and this limits sources of funds for the Average Small Business so Personal Credit Cards generally become the "Plan B". Some people are lucky enough to have family members with disposable income but it certainly is not the rule.

Start Up money has historically been difficult to come by even for those with pristine credit.

For existing Businesses Banks tend to put significant emphasis on Personal Credit Scores which disqualifies over 98% of Small Business Owners, and this is why many Retail and Restaurant Business owners avail themselves of alternative means of financing such as Merchant Cash Advances. Often MCA's can be overly expensive and can create greater cash shortage issues than they resolve.

There are alternative programs out there that look more at the financial health of the business as well as the cash flow rather than the Principals Credit Score. Our Company, RPS Growth Capital, offers these type of programs for US Based Small Business at rates that are typically less than half the cost of a Merchant Cash Advance with much more lenient underwriting than the Bank.

Interested parties may feel free to visit www.rpsgrowthcapital.com where we have been serving the Capital Needs of Our Clients since 1992.

Re: Source of funding

While credit card comes in handy,,, i still don't think it's a good source to finance a business. It may serve its purpose and give you a "fast" assistance,
however the interest might be more than the profit you are earning.
There are financial institutions that can a businessman / entrepreneur find sources and accredited investors that may be interested in financing their business.

Re: Source of funding

Nice thread, I was also looking for Source of Funding!

Re: Source of funding

Credit cards are a very expensive form of finance for a small business. Unfortunately banks can be quite unresponsive in difficult times and are quite often unlikely to offer cheaper lines of credit, especially if they think there is a high degree of risk. The cheapest form of finance for small businesses is to issue equity.

Re: Source of funding

Out of the 6 mentioned categories:

Credit Cards
Earnings of business
Bank Loan
Private Loan
Vendor Credit
Leasing

-Which one is the least risky?

-Which comes with the least amount of cost usually?

-What do you think is the percentage of people that are using a combination those loan sources?

Those are some the questions this cool study got me thinking about. Thanks for the post!