<p>If you&rsquo;re running a small business, then it&rsquo;s very likely that you&rsquo;ll be looking for funding at some point. There are a multitude of reasons that may cause you to look for funding. Such as&hellip;</p> <ul> <li>If you&rsquo;re just starting your business, then you may need startup funds.</li> <li>If your business is already established, then you may need extra funding to expand your business or pay some bills during a tough time.</li> </ul> <p>When you're looking for small business funding, you will want to keep a few things in mind to make it easier.</p> <p><strong>Rigorously Separate Personal from Business</strong></p> <p>You should separate your personal credit from business credit to obtain the money you need from lenders for your business. With a good business credit file you can obtain double, triple, and sometime quadruple the amount you would have qualified under personal credit.</p> <p>Plus, should you ever be audited by the IRS, you&rsquo;ll want to have clear separation of personal and business expenditures.<br />If you are unfamiliar with the nuances and contrasts of business credit to personal credit, then you may need to enlist in a business credit builder program. Business credit does not build &ldquo;automatically&rdquo; like personal credit and these programs can put your business on a fast-track to funding in the best possible way.</p> <p><strong>Primary Sources for Small Business Funding</strong></p> <p>Banks and credit unions are the typical main source for funding. This means that if you're trying to get funding, you'll want to start with banks or credit unions that you already have accounts with.<br />If you have multiple accounts with a bank or credit union that are in good standing over a period of time, then you'll be more likely to get funding. They will have a clear picture demonstrating that you can manage your business's finances.</p> <p>Creating business accounts will get you the most attention from lenders, so be sure to set up your business correctly, register with the Secretary of State website, and list your information in the 411 national directories. Lenders look at all documentation to ensure you are a legitimate business and have proof to back it up.</p> <p><strong>Your Business's Industry and Size</strong></p> <p>Typically, you may have a higher interest rate if you have a smaller business or you're in a certain industry. In some cases, certain industries are not able to receive funding &ndash; even from some of the government loans. Many lenders can see certain industries as a high risk investment.</p> <p>You should learn what SIC codes are considered high risk for most financial institutions before registering your company, and ensure you are listed under one that falls into a safe category. You can always establish the business that you set out to do; just classify in a separate division of the main company.<br />Finally, it's important that you remember that your personal credit history may and will probably be viewed carefully by potential lenders.</p> <p>What does this mean exactly?</p> <p>It means that if you have bad credit or no assets, then you may not even be considered for any of their small business funding. Even if you have excellent credit history and assets, you may be required to sign a personal guarantee that you will repay the loan. It's important to know all of these things when you're looking for funding.</p> 2009-06-15T06:18:49Z 2009-06-20T12:20:20Z -6.36484 285 5016 true 11 34847 strategies-for-small-business-funding 2 2009-06-19T11:38:19Z 2009-06-20T12:20:20Z

If you’re running a small business, then it’s very likely that you’ll be looking for funding at some point. There are a multitude of reasons that may cause you to look for funding.

1 2009-06-20T12:20:20Z