Small Business Financing Pensacola FL

Dear StartupNation : I have great ideas for my new business, a knack for organizing, a killer business plan, good contacts and I’m a tireless worker. Plus I’m young (not bad looking either) and have talent galore. But one thing’s missing: MONEY. I’m totally flummoxed about funding. Can you explain the options and suggest some helpful resources?

Well, at least you’re not short on self esteem! But money — or the lack thereof — is the missing link in many a grand business plan. Startups often launch with less than they need, and struggle from Day One. Adequate financing for your business and the know-how to use it wisely are crucial ingredients for your business to grow and thrive. Inadequate funding limits what you can do.

Methods to finance a business fall into a few broad categories — either debt or equity financing from institutional or informal sources.

Debt financing is a loan you pay back. Common sources include: family and friends , personal credit cards , home equity lines of credit, commercial bank loans and bank loans backed by the US Small Business Administration (SBA). Some small businesses also receive a type of funding from suppliers and vendors in the form of special payment terms, discounts or even direct loans. Suppliers want you to succeed, so they are sometimes willing to help.

With equity financing, you give up pieces of your business in return for cash. The good news is, you generally don’t have to pay the money back.

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