Business Funding 101 - Small Business Credit and Business Financing

It is almost inevitable that at some point during the life of a small business, it will need business credit, business financing or business loans. This could happen during the start up of the small business or later for the purpose of business debt financing or small business expansion. It can also happen when the business has contracted a large sale for goods or services but needs the cash or business credit to cover up front costs. Whatever the need is for business credit or business financing, there are particular elements a small business owner needs to be aware of when seeking business financing.

First and uppermost, small business owners need to know that whether the small business has bad credit or no credit, in the majority of cases, some form of business credit or financing is available. This is possible even if the small business owner has been rejected for a small business loan by the bank. Secondly, but equally as important, a small business owner must be aware of how to separate personal credit from business credit in order to protect his or her personal assets. 

In this section you will learn about a wide range of topics from what type of financing is available to the 5 C’s of lending.  We will also touch on the Small Business Administration, the benefits of credit based financing versus non-credit based financing and the benefits to building business credit. We also discuss interest rates, how to recognize business loan scams and debt to income ratio monitoring.

Please use the links below to read about the basics of business financing: