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LegalCornerTM - Financing a Business F.A.Q.'s

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Q.What are some financing alternatives for a small business?

A.Unfortunately, a small business often requires its owner to commit their own funds first. Not only is it the best indicator of how much faith you yourself have in your business, but it should future potential investors the confidence you have in the business. The second step is to consider family members and friends. However, if you have tapped these sources out, you can then look to: banks, commercial finance companies, venture capital firms, local development companies, and life insurance companies.

However, prior to taking a loan you should consider bartering with other vendors who you presently pay for services or materials (trade credits), selling corporate stock (if you are incorporated) and equipment leasing (which often can free up cash).

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