introduction: if you only through the news to know something, you might think that risk investment is the only way to fund your business. However, most companies in fact in the beginning is not any venture capital value.
for those who want to own entrepreneurial companies have full control over the people, there is no way to get the favor of investors or entrepreneurs who, we also have other ways to help them get the funds needed for development. In the United States, start-ups can also be obtained through these three common channels of financing, as a substitute for venture capital. In China, although the policy and specific implementation steps are different, but these 3 forms are also exist.
small business loans
if you need a lot of money, small business loans can provide you with hundreds of thousands of dollars in loans to pay for the necessary equipment, venues and labor costs.
The main advantage of
is that they allow you to get more money at a lower cost. For example, the U.S. Small Business Administration statistics in 2012 the average loan amount of $300 thousand to break through $2.25%, there is a small business authority secured loans, if the period of less than 7 years, the interest rate should not exceed the best interest rate.
The road to
loans is not always bright. Working capital loans or revolving credit lines may sometimes be more in line with your needs. You may find that small business loans often exceed the amount you need, and you have to pay interest on the loan.
tip: if you want to take the above route, you’d better have a good relationship with your lender, which will make your application more likely to be approved.
commercial credit card
if you prefer a more flexible revolving line of credit, then you can use a commercial credit card to avoid the additional interest brought by large loans. For example, if you just need to pay the wages of the workers and the hand is not good enough, or you just want to do a small amount of marketing, you can consider the use of commercial credit.
business credit card loan benefits not only because it has a flexible credit line, it is also of great help in the accounting records, because most of the credit card accounts to provide some form of recording function. Many credit cards also give prizes to customers when they are conducting business transactions, such as office supplies, free travel, and even the right to use the airport lounge.
is almost all in want of perfection, business credit cards require you to personally guarantee your credit. This means that if your company defaulted on its loans to small enterprises, so, even if your company is a Limited Liability Company, even if you do not bear any personal responsibility for them, even if the enterprises have been closed down, you must all pay off credit card debt. In addition, due to the credit card debt is unsecured, its interest rates are often higher than the general mortgage.