If you’re lucky you’ll be running one of those businesses where all you’re going to need to get started will be a ballpoint, a pad of paper and your packed lunch.
But for most of us we need a bit of a helping hand. Whether it be for buying in stocks, paying the deposit or the first month’s rent on a premises, getting the office equipment in or settling the wage bill, until that money comes rolling in from your clients it’s a lender that’s going to be picking up the tab.
So Far so Bad, but Where Are You Going to Turn for Funding?
Believe it or not this is likely to be one of the most important decisions you will have to make. Because if you’re in hock to the wrong person and the repayments turn out to be crippling then your business is likely never to get off the ground.
When I was setting up the first place I looked was to my family. Between them they stumped up over half of my starting capital. Sure I’ve got to pay them back – they don’t love me that much! But the money came as an interest-free loan so I don’t have to worry about how much it’s going to cost me to repay them.
If you need more once the reservoir of goodwill has dried up look for a business loan from a reputable lender on terms which will give you half a chance of meeting the repayments without getting yourself into further trouble – or going under. Your bank should have just what you’re looking for; it if doesn’t it’s time you switched.
Unless your credit history completely sucks you’ll always find a lender, but doing so at a sensible interest rate is likely to mean the difference between success and failure.