You have a brilliant business idea and you are ready to execute your business plan, but financial resources are still hard to come by. It is a shame when people have ideas or dreams about a certain type of business but financial support is none existent. Do not give up. There are ways for you to fund your small business.
The first place you have to look for funding is your own pocket, after all this is your dream. You know that you need to input as much as possible to make it all worthwhile. Tap into your savings before you look at any other option. This way if you end up borrowing the extra that is lacking you will not owe as much as you might have if you borrowed the entire required amount.
Family and friends are also a great place to go for small business financing. Ensure that you come up with a formal mutual agreement as to how you will make repayments. This is a very sensitive group of people and you do not want to cut ties with them. For all you know they may be your first customers. Write down everything on paper so that you can avoid misunderstandings.
Most people approach lending institutions for small business loans. You will require a business plan when going for this option. You also have to decide if you want a secured or unsecured loan. They will analyze your credit rating to decide if you qualify for this kind of financing. Bank statements will help them know where your business is at the moment. Angel investors are another source of small business financing. They come in after you have accumulated your funds from various sources and if it is still inadequate they fill in the gap. They may be difficult to gain access to. The ideal time to approach one is when your business is expanding.