If you are like many entrepreneurs who start a new business or have decided to expand your business, you will be in need of capital. When you start a business you will need money to get it off the ground; to pay rent, purchase equipment, and pay any professional fees associated with your business. There are several places you can turn to get the money you need to make your business a success. But first, we should briefly discuss the types of funding, so you can distinguish which one applies to you:

1. Seed Capital – this is the money you will need to do your initial research and planning for your business.
2. Start-up capital – also known as working capital – this is the funding that will help you pay for equipment, rent, supplies, etc. for the first year or so of operation.
3. Expansion capital – this will be the funding you need to get your company to the next level; whether it is to purchase new equipment or to move to a larger facility.
4. Bridge capital – funding that allows you to close the gap between your current and next level of financing.

Each of these stages play an important role in the financing of your business. As a prospective or current business owner, you must allow enough money in start up capital that will cover your first year of expenses. This may include employee payroll, rent production and operation costs or general costs. Whatever the business cost, obtaining financing for your business is a necessary evil.

Now you may be asking yourself where do you get the financing? Well, there are many avenues to pursue. First, depending on how much capital your business needs, you may find using personal funds the best option. Second, before you use your entire personal savings, you may want to tap into the friends or family pool. Third, if you decide that a business loan from a bank or lending institution is your best or only option, then there are a few things to consider before submitting that application. Consider what exactly will the loan be used for, what length should the loan be and what assets can you use as collateral. Once you have answered these questions, then the next step is to get your loan application completed. But most importantly, before visiting the bank, do the following:

1. Call to make an appointment
2. Put your professional foot forward
3. Have a well-prepared business plan accompanied with all financial documents.

The Write Business Solution is a full service business development, training and consulting firm that specializes in getting you and your business to the next level. Located in metro-Detroit, our dedicated and professional consultants will work efficiently to make your goals become a reality. WBS makes it happen! For more information about our services and products, visit us at WriteBusinessSolution.com.