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Home Business Loans Start-Up Financing: Estimating Start-Up Costs
Accessing capital for any small business isn’t easy. It’s even more difficult for start-ups. Having been there myself, I understand how most of the time Main Street businesses start on a shoestring. With little or no income, possible reliance on the equity in your home for collateral, and your personal credit history as the only foundation for a loan, it can be difficult to walk into the local bank or even an alternative lender, and get the debt financing you might need. When lenders look at your personal credit score, it tells a story about you and your new business. Understanding that story is one of the first things you’ll need to do, additionally, at the top of the list, a good estimate of what it’s going to cost you to start your business is a next step.
The following is a list of start-up costs you may or may not have when starting a business. Large or small, it all adds up pretty quickly:
Although having all these cost estimates nailed down won’t guarantee you’ll get a small business loan, when asked, if you can demonstrate that you’ve given these things consideration and can show the lender your estimates, you’re further ahead than the next person that will come in looking for a loan.
Although they usually ask about your credit score, your time in business, and your revenues, what they really want to know is:
Starting a business is not for the faint hearted. It requires passion, a product or service your customer wants, and the attention to detail that will help you dot all the ‘Is’ and cross all the ‘Ts’.
Small business evangelist and veteran of over 30 years in the trenches of Main Street business, Ty makes small business financing and trends accessible in common sense language devoid of the jargon.
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