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Finances

There are three major reasons why businesses borrow; the first and most common reason is to purchase assets. A loan to acquire assets could be for buying short-term or current assets – such as inventory – and would be repaid once the new inventory is converted into cash as it is sold to customers. Or, the funds could be for the addition of long-term, or fixed, assets, such as equipment.

The second reason is to replace other types of credit. For example, you may wish to use the funds to pay suppliers more promptly to get a discount on the price of the merchandise.

The third reason is to replace equity. If you wish to buy a partner’s share in your business but you don’t have the cash to do it, you may consider borrowing.

While the Longwood SBDC does not provide financing, we have professionals who can help you:

  • Identify equity financing options
  • Structure the financing
  • Identify sources of funding
  • Prepare financial projections
  • Analyze financials and compare to Industry Standards
  • Prepare business valuations
  • Provide accounting guidance
  • Access expansion capital

Unfortunately, grant monies are usually not available, with a few exceptions of high technology businesses. For additional assistance visit the U.S. Small Business Administration or Grants.gov website.

To learn more about financing your business, contact your local Longwood SBDC to schedule a no-cost, confidential consultation today!

 

Resources:

The Entrepreneur’s Business Planning Guide: A Map for Success & Obtaining Capital
The Entrepreneur’s Business Planning Guide is a comprehensive, user-friendly workbook for creating a formal business plan.

 

 

Would Your Business Benefit From an Annual Health Checkup?
SBDC professionals use SageWorks ProfitCents Software to give you a straightforward comparison of your business to your industry, with easy to understand explanations of the data and suggestions for improvements.

 

 

Financing Basics
Understanding the basics. Have you thought about how you are going to fund your business?

 

 

What to Know and Do Before Applying for a Loan for Your Business
Going after a loan? These are the six essential areas a lending institution will consider.

 

 

Facts about Small Business Loans
Some basic facts you need to know about small business loans.

 

Types of Financing
Describes the types of ways a business will seek to obtain money or financing to start a business.

 

 

Additional Sources of Capital

 

 

Lender Preparation Checklist
Learn the secret to a successful meeting with your lender.

 

 

The Small Business Report Card – Is your business making the grade?
The information in this book is designed to help you “score” some insight into the performance of your business. This report card reveals the strengths and weaknesses of your company – and provides an opportunity for solid improvement.

 

 

How to Pay Business Debts You Can’t Afford
This guide provides an understanding of what to expect and what to do when getting out of debt on a limited budget.