Monday, March 28, 2011
Banks are clammed up, looking for maximum security and maximum return. SBA tries to fund small business, but only (okay mostly) giving out secured loans, and unfortunately your house doesn't have much or any equity any longer. Grandma is not answering her telephone and not returning your calls because she already took a hit and cannot further afford losses in her savings and retirement funds.
There are other options to fund your business including bootstrapping (that is if you yourself --or your family-- have the funds), bringing in new partners (that is if you can work in a partnership environment and actually find partners), or Angel Investors (that is if your business operates in web or technology startup world and if you have a noteworthy, scalable business idea). By the way I will do a whole series of posts on Angel Investor world shortly.
No matter what you do in funding your operation, try to avoid funding options built around taking what you have. So, avoid transactions like you will see in this classic, priceless video of Abbott & Costello:
...and stay tuned for my upcoming posts on the Angel Investor world as those may offer viable options.