Financing a small business is often the main obstacle to getting it off the ground and becoming a service to consumers. CNBC composed a list of things to consider when trying to obtain the capital needed for funding a small business.
"These days you're more likely to win at roulette than secure a bank loan," entrepreneurial advocate Mike Michalowicz told CNBC.
CNBC advises to do some research before applying for a bank loan. Making sure that business plans are complete and thorough, and settling for 50/50 split of assets make obtaining a bank loan easier.
The news source also says that a mircoloan may be the way to go for small businesses seeking less than $50,000. The Small Business Administration works with nonprofit community lenders in a Microloan Program to provide smaller loans to entrepreneurs.
One place small business owners are turning to for loans are pawn shops. According to Reuters, pawning is easier than obtaining a bank loan, but the interest rates may be much higher.
Although not the best source for extra cash, pawn shop loans can provide funds necessary to stay above water for a while longer. Pawn shop loans are typically seen as a last resort for small business owners, says the news source.
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