Regardless of whether you are a start-up or an existing business, whether the economy is strong or weak, securing credit for your small business is never easy.
A recent study commissioned by SBA’s Office of Advocacy suggests that most small businesses rely on a combination of trade credit, credit cards, and owner equity/personal credit and the type of business you have will suggest likely concentrations of each. Although it is important to determine what is best for your business independently, it’s also wise to understand your industry and the customary financing options utilized. With this in mind, trade associates in your industry may be a good source for guidance on financing options available for your business.
Another place to look is your state, county and local development departments or companies. Many offer funding programs to foster business within a certain geographic area. One example (of many) is the New York State Economic Development site which outlines many grants and resources available to businesses.
The SBA recognizes that the conventional commercial loan market may not offer many small business owners access to the capital they need to keep their businesses strong and help them grow. With this in mind, SBA has developed a number of financial programs for small businesses. For instance, SBA’s micro loan program offers an alternative source of financing for small loans and SBA’s Express loan helps business get smaller lines of credit.
Searching for financing for your business should be an ongoing activity. Constantly seeking sources of capital for your business is the best way to be prepared to leverage your business’ success. This will also position your company to act and take advantage of any profitable business opportunity that may arise.
*SBA’s participation in this blog does not constitute an endorsement of the William E. Simon Graduate School of Business Administration or any other person or entity. SBA’s programs and services are provided to the public on a non-discriminatory basis.