Creative Lines of Credit
So, you think you've got a great new idea? You believe that everyone would want your product, if only you could produce it. You are going to need a <a title=Business credit line at Innuity Funding! Href=http://innuityfunding.com/page/1ny5j/Resources/Business_Credit_Line.html>business credit line</a>. Where do you begin? You are likely in what’s commonly referred to today as a “start up” phase. The term “start up” came from the mid 1990’s once the Internet created a gold rush of ideas online, fostering a surge of entrepreneurs the chance to jump into a new market with presumably tons of money to be made.
The dot com bubble may have burst, but the name has stayed. Now, in this 2008 financial crisis, entrepreneurs looking to grow an online store or brick and mortar business are faced with new obstacles that were not a problem before. Credit. During the dot com boom, credit was flowing freely and men and women were confident in the markets and confident their business plan was going to reap in big money. Today however, it is an entirely different ball game.
Types of Financial Assistance Available for Entrepreneurs Today
• Family- Sometimes the simplest ways to go about borrowing money is from family. If you have some relatives with deep pockets whom you can borrow money from, your business can take off faster than waiting for a bank loan. The downside is the emotional connection that can be quite stressful when borrowing money from family members.
• Close friends- Similar to family, borrowing from trusted friends is usually faster than waiting for a bank or venture capitalist, but there are emotional factors to keep in mind. Obviously, if your idea is fool proof, and you have a solid business plan, and you have a written contract describing your re-payment plan, there shouldn’t be much holding you back.
• Angel investors- Angel investors are individuals who have a large net worth and a desire to invest seed money in start-up companies. The market for angel investors is usually private and informal.
• Venture capitalists- Venture capitalists and other investors want a great deal of information prior to signing on to a project. They will want specific guarantees, and often will require contractual language that allows them to "take over" if the project does not proceed according to plan. In return, they will contribute capital, oftentimes business skills and expertise to your business
Regardless if you choose friends, a bank or venture capitalists, you should put yourself in an investor’s shoes. It doesn’t matter who is funding your project, they want a sound, long-term capital gain on their investment. This translates into sufficient rewards for the level of risk they are willing to take. You will need a solid business plan, proof of your research, determination and current efforts. Unfortunately, in this economic climate, entrepreneurs need to get creative when it comes to finding a <a title=Business credit line at Innuity Funding! Href=http://innuityfunding.com/page/1ny5j/Resources/Business_Credit_Line.html>business credit line</a>.
About the author: Melissa Peterman is a web content specialist for Innuity. For more information regarding a business credit line go to Innuity Funding.
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