Funding

There is a balance between when a personal guarantee is a good idea and when it isn’t. The deciding factor is the ROI. How do you find the balance and increase the ROI on your personal guarantee when it’s necessary to give it?

Venture capital is a type of private equity investing in early-stage, high-growth companies where investors look for startups that have the potential to generate a significant return on their investment (read: looking for the next Uber or Airbnb).

Using a starting a business checklist is important to both staying on track and ensuring that nothing is missed.

It’s crucial to select a card that corresponds to your spending style. You might prefer a card that gives you cash back on office equipment, utilities, and advertising if most of your business’s expenses are for routine operations. On the other hand, if you frequently schedule business travels, a travel card can be more practical.

Business owners should keep in mind that low consumer credit scores + no collateral + high amounts will mean that a small business will have to be bringing in significant revenue in order to even be considered.

Cash flow is one of the top benefits of investing in commercial real estate. As long as you thoroughly vet your tenants and ensure they have a strong and stable business, you can expect regular monthly payments with a lower risk of default than in residential real estate.

After crunching the numbers, choosing the right lender and loan will most likely come down to personal preference. For a term loan or an SBA loan, if you can get either from the bank where you have your business bank account—and all the other variables look good—then that is probably the best way to go. This is because banks have their own internal scoring system and ratings. Using more bank products like a small business loan can help your business out. Better bank ratings can help you get a second small business for more money later. There are reasons to choose where you already have your business bank account which go beyond simple convenience.

What’s the difference between a business line of credit vs a loan? How do you know which on is right for your business? It all comes down to how you use the funds. Large one time expenses need a loan, but cash flow is more easily managed with a line of credit.

You may find there are few grants for the flipping industry, but you may be able to score grants based on the kind of entrepreneur you are, e. g. female, disabled, LGBTQ+, etc. Also check under terms like gentrification and rehabilitation.

One of the biggest advantages of debt financing is, you retain full ownership of your small business. And while you will most likely need to use profits in order to pay debts back, you won’t have to siphon off profits forever. And, without handing over any portion of the business, you are not losing any measure of decision making or control.