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New business finance options

One of the easiest new business finance options is the possibility of borrowing the money you need from family or close friends. Remember borrowing money this way would make them a investor, so it is important you present the information needed in an appropriate way. Just as you would any other investor you should present an official business plan and projection of your business' future earnings if you have them. It is only fair they are as informed as possible when it comes to making the decision whether to invest their money. If they agree to it, you should ensure both parties are covered with a professionally drawn up contract. This will also ensure everyone is aware of what is expected of them.

Traditional lenders such as banks and other financial institutions are obviously the most popular of your new business finance options. However, you have to make sure you have a wealth of information concerning your personal finances as well as your business plan ready before you even approach the bank for a loan. Because your business is not yet off the ground, many banks have to take a risk that your venture will be a success by lending you the capital you need. However, they will consider a loan if you have a solid credit history and you are able to prove you have a good knowledge of your potential market.

Another consideration is applying for a new business finance grant from the government or a relevant agency. These grants are popular, and you will need to meet a strict criteria in order to qualify for consideration. Depending on your business, and how much finance you need, you can apply for one of these grants by contacting your local authority for more information. Alternatively, if you have found an agency who offers grants in your specific business market, you can contact them direct.

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