How do I find financing to buy a small business?

Some banks extend what they call "small business lines of credit" often through credit cards. Those are easier to get and can be based on your credit history alone. They typically are up to $100,000.

For example, Wachovia's has various business lines of credits http://www.wachovia.com/small_biz/page/0... Their business line of credit can even be approved overnight,

However, if you're applying for a loan and if it is a big amount, banks and even the SBA may consider other factors aside from your business credit:

- A business plan explaining what the business is

- Your background and experience in the business -- in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you

- Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application

- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you

- Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

Aside from banks I suggest you consider microloan providers. They typically fund up to $30K Read about the SBA Microloan Program http://www.sba.gov/financing/sbaloan/mic...

If you wish to explore angel investors, you may want to go and pitch your ideas where investors gather. Here are some places where angel investors come and those looking for funding can come and pitch their business plans. Be sure to have a strong business plan and describe what makes your business idea stand apart:

Angel Capital Association http://www.angelcapitalassociation.org
Angel's Forum http://www.angelsforum.com
Band of Angels http://www.bandangels.com
Common Angels http://www.commonangels.com
Keiretsu Forum http://www.k4forum.com
Launchpad Venture Group http://www.launchpadventuregroup.com
New World Angels http://www.newworldangels.com
New York Angels http://www.newyorkangels.com
Robin Hood Ventures http://www.robinhoodventures.com (charges $250)

Banks are difficult unless you can provide collateral, try the SBA they specialize in these loans. Be prepared to provide 3 years tax returns for the business and a detailed business plan.

Since you're a minority (female), contact the SBA to see what they have available. You'll be expected to write up a full business plan. Of course, you can contact local banks, but they'll also want proof of the viability of your business. Also, most banks expect that a good portion of your start up money is coming from your personal finances. Their feeling is that if you don't believe in the business enough to invest in it, why should they?

Hi,

Why not start a home based business which costs less to get into and has much lower running costs.

Have you looked at USANA?
Take a look at www.perfectyou.usana.com - Health, Wealth & Freedom

The company has been running since 1992, its a great opportunity to start a home based business with low setup costs and great ongoing training.