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Business

Funding Your Business

All businesses require some form of financing. MOSourceLink lists four fundamentals of financing.
 

1. Estimate the amount of funding you need

To secure financing for your business, start at the beginning: how much money do you need and for what?

 

2. Determine the best source of funding

Funding for startup and growing businesses often depends on your stage of business and the amount of money you need.

Is your business a minority-owned, woman-owned, or vet-owned business? If so, there may be specific funding options for you. The Multicultural Business Association (formerly Minorities in Business), International Institute of Southwest Missouri, the SBA (Small Business Administration), or Vet Biz will be able to help you.

Microloans

Microloans are a non-traditional loan option for small businesses that cannot access bank loans. Microloans are typically much smaller than bank loans and are generally made to small business owners with fewer than 5-10 employees. Nonprofit microfinance organizations like Accion, Kiva, Grameen America, and Women’s World Banking work worldwide to provide opportunities to small entrepreneurs who cannot access bank loans. 

 

Check out these Missouri state and local resources to apply for a microloan: 

 

Repairing Your Credit 

The SBA states that most outside lenders will look for a credit score of around 700. If your credit rating needs help, check out these resources:

 

No Free Money

There is no free money to start a for-profit business. Most grants are for nonprofit organizations, not small businesses. In MOSourceLink’s The Truth About Free Government Grants article, they remind us to “BE VERY CAREFUL of advertisements promoting “free money for your business.” Often this is a list of microloan programs that must be repaid. 

 

 

3. Put together a business plan

Most outside financing sources will require a business plan that outlines how and when the funder will be repaid. A business plan serves as a road map to the future of your small business. A good business plan will help you secure financing and credit for your business, provide a guide for managing operations, finances, promotion, and marketing, and clarify goals and objectives.

 

4. Get information about various types of funding

You know how much money you need and the most likely funding source. Now get more information about the types of funding sources. 


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