Small Business Financing
Spontaneous financing basically means you need money NOW! and usually this refers to a credit card or line of credit.
If you are in the position of just starting your business, and you still have a day job, then consider getting larger credit in place, even if you don't think you will need it. It is much easier to get a larger credit line or larger balance on your cards if you do this while you are still working. As per usual, it is easier to get credit when it looks like you won't need it! If you can do this kind of forward thinking you will have less headaches when you see a great deal on that piece of equipment or can get a steal of a deal on a large quantity of supplies. |
Also consider getting a low interest credit card that you will use for business purchases only. Start small and pay it on time each month, then ask for a larger credit limit, and do your best to keep this particular card as empty as possible so that you will have "spontaneous business financing!
Sometimes deals can come up where you will need a larger amount of cash to draw on. That is great if it is sitting in the bank, but what if you just don't have that extra cash and you need to decide in the next few minutes?
Planning ahead in this case with a low interest line of credit or credit card before you need it, will help to finance these purchases and help to grow your small business.
If you have not done any of this pre-planning and a good deal has come up on supplies or a piece of equipment, you could try to apply for store credit. Some stores just want to move older models out and newer ones in, and may consider letting you have a store account for your business.
This is something else that can be setup ahead of time, but it is worth asking if they are trying to sell you something right now.
Bartering is another way to gain equipment and supplies. If your business has something of interest to your suppliers, then you can work out a deal this way, as long as you stick to your end of the bargain.
Sometimes deals can come up where you will need a larger amount of cash to draw on. That is great if it is sitting in the bank, but what if you just don't have that extra cash and you need to decide in the next few minutes?
Planning ahead in this case with a low interest line of credit or credit card before you need it, will help to finance these purchases and help to grow your small business.
If you have not done any of this pre-planning and a good deal has come up on supplies or a piece of equipment, you could try to apply for store credit. Some stores just want to move older models out and newer ones in, and may consider letting you have a store account for your business.
This is something else that can be setup ahead of time, but it is worth asking if they are trying to sell you something right now.
Bartering is another way to gain equipment and supplies. If your business has something of interest to your suppliers, then you can work out a deal this way, as long as you stick to your end of the bargain.
