Getting a small business loan isnt as easy as it once was. Therefore, entrepreneurs are looking to other financial sources for small business loans. Venture capitalists and other financial institutions are helping small businesses get capital fast in a time when cash is hard to come by.



How Much Should Your Small Business Loan Be?

According to business researchers, the general rule of thumb for beginning small businesses needing a loan is to have a sum of money at least equal to the projected revenue for the first year of business in addition to anticipated expenses. For example, if the restaurant owner believes he or she will make $200,000 in revenue for the first year, with $250,000 in building and starting up expenses, than they should have no less than 350,000 available. Otherwise, the restaurant owner could be faced with huge amounts of debt or bankruptcy.





Without an accountant, advisor or proper funding, small businesses can aim high but end up falling short and blow their opportunity to do it right and become successful. The first step they can take is to get the assistance from a small business credit service that help small business owners reach their financial goals and give them the assistance they need to be successful in all areas of their business.



If you dont have access to friends or family with deep pockets, for small businesses looking for credit services, there are plenty of professional organizations who specialize in giving small businesses quality, affordable loans.



Other Sources of Capitol if You Cant Get a Small Business Loan, or You Need More Capitol Than That

Credit Cards

Credit cards should be used with caution. Rates can be high and minimum payments low. But if you are unable to pay back the credit extended in a timely manner, it can lead to a financial nightmare for you and your business.

401K and IRA/Retirement Money

Many 401K and IRA plans allow you to borrow from your retirement savings for a limited time without penalty. You must pay it back on time or there are big penalties.

Home Equity Loans

With interest rates being low and tax deductible, some people do look here for capital to start their business. You will have to pay any additional payment even if your business fails or you may lose your house.

Deposits

Get deposits from your customers in advance for products or services- that way you will have cash fast in order to fulfill quick cash needs.

Extend Your Payment Plan

Negotiate extended terms on money owed to vendors



Any cash you can use now before you borrow money will help you out. Working with the capitol you have and making it work will be the leverage you can use to show a venture capitalist or another financial firm that your business is not considered a bad risk.