Start-Up Business Loans

Biz4Loans a Small Business Loan Company in California Discusses Start-Up Business Finance Options

Starting a business is a very exciting time for entrepreneurs, but it can also be the most daunting. Often the greatest concern would be to raise the appropriate business finance needed to get going.


Fresno, CA -- (SBWIRE) -- 11/13/2014 -- An entrepreneur might have an excellent business idea and knowledge of how to market and manage the idea to turn it into a successful business. However, if sufficient business funding can’t be raised, it is less probable that the company will be commenced.

Luckily, there are still options for funding new companies, but finding and securing the cash requires careful research, good negotiating skills, and, above all, an unrelenting commitment to launching our new business.

The entrepreneur needs to be able to address the following concerns:

How much finance is needed?

Whether the entrepreneur is willing to borrow or give up some ownership of the start-up in return for investment?

How long is the start-up finance needed for? – Short-term or long-term?

In the case of borrowing, what security can be provided?

Sources of finance for new businesses

In this current economic climate, banks are getting increasingly wary of lending to SMEs. However, there are other ways of securing funding for new starts.

Before we outline the several sources of start-up finance, it is important to take into account the purposes of this funding:

Set-up costs – costs incurred before the business starts to trade

Fixed assets such as equipment and premises that the business needs before it begins to trade

Finance for inventory such as raw materials

Payroll – even if it is just our self

Growth and development e.g. extra investment in capacity

Start our capital search with a good business plan that shows investors and lenders our company's potential. Fully comprehend our available resources and we should be on our way to uncovering a source that fits our new business' financial needs. Below are some suggestions for options that could raise start-up cash for our business.

Personal Savings

As a founding entrepreneur, if we’ve got some capital, we can choose to invest it into our business. This is a common method of financing a start-up. Once the investment has been made, it is the company that owns the share capital. We retain full control of the business and enjoy full dividends once the business starts to make profits.

Invoice Finance (Factoring)

Factoring could release up to 90% of the funds locked up in our unpaid invoices, usually within 24 hours of the invoice being raised – we could have access to funds as soon as we start trading. The facility grows in line with our sales turnover and allows we take advantage of early supplier discounts. In addition, the factoring company manages our sales ledger which enables we start our business without any fear of defaults. This could be a suitable business loan that could enable us cover our start-up costs.

Bank Overdraft

An overdraft facility enables businesses to obtain short-term funding. It’s an agreed form of finance where the bank sets the amount of money we can borrow in return for a high interest rate. An overdraft allows businesses to make payments from their current accounts exceeding the available cash balance. The bank may require some form of security before offering the facility – this mostly applies to large overdraft amounts.

However, the amount loaned is repayable on demand by the bank. They may do this if they are concerned about our ability to repay the debt, or reassessing their own risks. Watch out for our expenses or we risk having the facility withdrawn or having to pay extra charges.

Bank Loan

Banks are still a popular resort in terms of raising finance. A bank loan is an agreed amount of money provided by a bank, usually secured on business or personal assets. It’s a longer-term kind of commercial finance and is suitable for financing investment in fixed assets. In return, we are obliged to repay a fixed amount of money in regular instalments, in an annuity. A shortfall to this form of finance is that the bank may be wary of lending to us in the first place, especially if we do not have any trading history. Preparing a bank loan application can be a difficult task because the availability of the loan depends on the funding required, collateral security and the entrepreneur’s ability to convince the bank that the business will succeed.

Business Angels

These are professional investors that tend to invest in start-up and smaller companies. In return, the angel acquires some control over the business. For further business advice see our article on Business Angels.

Borrowing from family and friends

It’s a common trend nowadays for new business owners to look to friends and relatives for financial support when starting a business. This is often cheaper and quicker to arrange and the repayment terms are usually more flexible than alternative sources of borrowing. Both parties need to be clear about the terms and conditions of the agreement in order not to damage personal relationships especially if the business gets into financial difficulties.

About Small Business Loans
Biz4Loans is a California-based company with an exciting new way of quickly closing commercial loans for businesses small and large. With a customer-centric focus and a high standard for quality service, we embrace new technology to pass cost savings on to our business clients. Entrepreneurship Advocates “Entrepreneurship is living a few years of our life like most people won’t, so that we can spend the rest of our life like most people can’t. “ – Anonymous We believe entrepreneurship to be one of the most rewarding journeys that a person can pursue and that no two entrepreneurs are the same. Some seek a better life for themselves and their families while others take on the risk in pursuit of independence. Whether it is a small town where everyone knows each other or a big city that never sleeps, every community relies on entrepreneurs to create and provide jobs and to usher in new possibilities. At Biz4Loans, we understand the challenges that entreprenuers face in financing their venture. We also understand that a startup entrepreneur frequently has to wear many different hats while her company is getting off the ground. This is why we provide a quick, convenient, and detail-oriented process that achieves results without unnecessary delays or obstacles. Growing the Business Community commercial loan brokers Whether it is financing to cover initial start up costs, purchasing of new equipment for an existing business or an expansion of facilities, Biz4Loans can help. We know that sometimes unexpected costs as well as unexpected opportunities require quick and decisive action. Our ability to quickly close a wide variety of loans has allowed us to build strong relationships based on our reputation for serving our clients effectively. Because of our speed and adaptability, Biz4Loans has brokered over $500 million in funding to businesses ranging from farms, hotels, and non-profits to office buildings, surgical centers and apartment complexes.