When is there not a time when small business owners need
cash for advertising, inventory, marketing, expansion and
even for start-up costs? And when asked, most business
owners feel their only resources for funding were local
banks and credit unions.
Now this was not said in a way to imply that one shouldn't
seek financing from a local financial institution.
However, I must stress that most local banks usually want a
business loan to be collateralized with personal assets
such as a home or land. If know this from experience.
It's very important for business owners to understand that
you must take a proactive attitude about developing banking
relationships in today's financial community. One very
good reason for this is that it is much easier to obtain
small business financing than compared to personal loans.
Then you have to carefully consider the type of business
funding you will attempt to attract. For example, getting
unsecured business credit lines would be ideal for your
business now and into the future. The biggest advantage to
this type of loan is no personal credit or collateral is
required.
It is vitally important to remind business owners to
consider the need to protect your personal assets and your
ability to minimize frivilous lawsuits that could wipe you
out financially in the blink of an eye.
An experienced small business consultant can be of
tremendous help in establishing your corporate identity and
unsecured credit lines which in turn will free your time in
dealing with more important day-to-day operations.
Here is a brief summary of important areas to re-consider
now that can undoubtedly have a huge favorable impact in
your company's financial outlook.
1. Limited-Liability Corporation (LLC) - If you do not
currently have a LLC entity set up, I would strongly
encourage you to do so. Although not an attorney, I have
personally witnessed personal assets frozen and seized when
business owners are faced with litigation. Due to endless
research, I ahve come to the conclusion that having a LLC
can better protect your assets and estate in the untimely
event you are sued.
2. Shelf Corporations or Aged Corporations - These are
corporations that have been around for 2 years or longer
that are in good standing with your State government.
These corporations can dratistically improve your ability
to obtain small business loans and unsecured credit lines
since many banks will not consider financing to businesses
with less than 2 years of existence.
3. Physical Street Address - If you are going to play with
the "big boys" you must play like the big boys. You must
have a physical street address and not a P.O. Box if you
want to establish a solid business credit history. You
must also have a phone number that directory assistance can
list.
The bottom line is this: You must have your proverbial
"ducks in a row" when steering your business down the road
of expansion and profitability. Seek expert assistance and
then act upon the professional advice given to you. This
will make any type of business financing much easier to
attain.
----------------------------------------------------
Floyd Tapia is an expert author, researcher, ex-banker and
financial consultant that provides up-to-date advice on how
business owners can get unsecured lines of credit and small
business financing from the world's top leading banks. He
also provides key networking for those wanting lucrative
real estate, stock market and business investments.
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