A snapshot of business to business finance

There are several different financing options available to you for financing your own small business or start up venture. Some financing options for personal businesses and for starting up a business include:

1. Business to business finance:
Business to business finance is basically a way of financing your own business by going through another business, such as a bank. There are many different companies, besides banks that you can go to when you are needing to finance your business. You can get money from another business that is not a loan company or bank. For example, if your business needs to purchase new equipment that is very expensive, you can go to a business that sells the equipment and they can help you to finance your purchase.

2. Your own money:
One of the easiest and simplest ways to finance your business is by using your own personal savings. There are many benefits to using your own money to finance your business. One of the main benefits of using your money is it is less expensive. This is because you will not have to pay interest on the money that is used. Financing your business with your money is easiest because there is no need to look for a lender, no loan applications to fill out, along with no waiting to get approved and to get the money. Keep in mind, to get the most money possible on your money, be sure to invest your personal savings in a high interest rate savings account.
3. Factoring finance loan:
This type of financing is done by selling your invoices to a factoring company. One of the biggest benefits of a factoring finance loan is you can get the money for your business almost immediately rather than spending all of your time trying to get customers to pay their invoices.
4. Commercial mortgaging:
A good way to go if you want to buy some land or buildings for your business may be commercial mortgaging. With this type of financing, you can set up a repayment schedule to match your budget. Also, you do not have to spend a large amount of your capital and with commercial mortgaging there are some substantial tax benefits.
5. Asset financing:
Asset financing is one way to get your assets without having to pay for everything all at once. With this type of financing, you will make regular payments for a specific amount of time and basically everything ends up being a rental agreement. Asset financing allows you to sell your assets while you still get to use them. Some of the benefits of asset financing are you do not have to spend a lot of start up capital and there are many tax benefits available.

There are several things you can do to increase your chances of getting a business loan.
- Have a sound business plan that is complete and well-presented.
- Use some of your own money to invest in your company. Owners that have at least 25% equity stake in the business increase their chances of getting a business loan because lenders like seeing that their money is not the only money on the line.
- Before starting the application process, review your own credit report. Lenders will be using your personal credit history when making a decision on whether you are a good loan risk. Knowing what they are going to find on your credit report puts you a step ahead. Contact the credit reporting agency if your credit report shows mistakes and get them corrected. If your credit report shows late payments or bankruptcies that are legitimate, you should include a letter with your loan application explaining the circumstances at that time.