Wednesday, December 12, 2007

How to get loans for your business

Ever since I told my self that I’ll not remain an employee the rest of my life. I want to start my own business. Manage it and see how it grows. However, starting it is not that easy since you have lots of things to consider. You need to plan for it. Need to identify what type of business you want to establish. Is it a long-term or just a short term business? You need to identify as well who will be your market, the location of your business and above all, do you have enough capital to start it with?

You may have all the ideas but the most common problems most people encounter when somebody wants to have their own business is the big C or the starting Capital. They may have the money but it’s not enough for them to pursue their plans and that is my problem too.

I was once informed that it is not a problem because there’s a particular organization that lends money for small time entrepreneur. Well, most business owner opted for Loans for them to have additional working capital. Micro loans for instance are small loans for start up or newly established small businesses. However, a micro loan may require some type of collateral and personal guarantee of the business owner. Also, owners should fulfill training and business planning as part of the requirements before the application is accepted. Compared to the traditional bank loans , micro loans are more relatively easy to obtain.

Well, as much as possible I don’t want to have loans since it’s a kind of debt. However, on the second thought, if it would be the way for me to start up my own business then I’ll need to take the chance and risk rather than working all my life as an employee where I don’t have any assurance as to when am I needed by the company.