cheap jerseys
Additional Money Sources for an Existing Business | Timesmagazine24
BusinessFashionLifestyleNewsTechnology

Additional Money Sources for an Existing Business

If you’ve been in business for at least three or four years and can show a history of profitable operations, a whole new world of financing options opens up to you. The major advantage you have over a start-up is that you can prove what you say, whereas a start-up can’t. Be careful if you’ve been in business for less than three years or can’t show a profitable history—financing sources may consider you a start-up and put you in a higher risk category.

Take your latest two or three years’ financial statements with you as part of your business plan when you talk to any financing source. That way, the lender or investor can see where you’ve been and where you’re planning to go.

Here is a list of readily available financing sources for expanding your small business. Consider each potential source of money carefully—each has unique advantages and disadvantages as they apply to your business. Approach whatever source makes the most sense for your business first; you can try others if the first one doesn’t work.

Trade Credit

After you establish a reliable record of prompt payment with your suppliers, normally they will consider extending additional credit for your expansion plans. Let them know of your plans well in advance; if you begin delaying your payments to finance your expansion without notifying them, they may get annoyed.

They have an interest in seeing you grow; after all, you’ll be buying more from them in the future. Sometimes they will even introduce you to their bankers and investors if you approach them with a well-thought-out business plan.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *


Back to top button

cheap jerseys