When is there not a time when small business owners need cash for advertising, inventory, marketing, expansion and even for start-up costs? And when asked, most business owners feel their only resources for funding were local banks and credit unions. Now this was not said in a way to imply that one shouldn't seek financing from a local financial institution. However, I must stress that most local banks usually want a business loan to be collateralized with personal assets such as a home or land. If know this from experience. It's very important for business owners to understand that you must take a proactive attitude about developing banking relationships in today's financial community. One very good reason for this is that it is much easier to obtain small business financing than compared to personal loans. Then you have to carefully consider the type of business funding you will attempt to attract. For example, getting unsecured business credit lines would be ideal for your business now and into the future. The biggest advantage to this type of loan is no personal credit or collateral is required. It is vitally important to remind business owners to consider the need to protect your personal assets and your ability to minimize frivilous lawsuits that could wipe you out financially in the blink of an eye. An experienced small business consultant can be of tremendous help in establishing your corporate identity and unsecured credit lines which in turn will free your time in dealing with more important day-to-day operations. Here is a brief summary of important areas to re-consider now that can undoubtedly have a huge favorable impact in your company's financial outlook. 1. Limited-Liability Corporation (LLC) - If you do not currently have a LLC entity set up, I would strongly encourage you to do so. Although not an attorney, I have personally witnessed personal assets frozen and seized when business owners are faced with litigation. Due to endless research, I ahve come to the conclusion that having a LLC can better protect your assets and estate in the untimely event you are sued. 2. Shelf Corporations or Aged Corporations - These are corporations that have been around for 2 years or longer that are in good standing with your State government. These corporations can dratistically improve your ability to obtain small business loans and unsecured credit lines since many banks will not consider financing to businesses with less than 2 years of existence. 3. Physical Street Address - If you are going to play with the "big boys" you must play like the big boys. You must have a physical street address and not a P.O. Box if you want to establish a solid business credit history. You must also have a phone number that directory assistance can list. The bottom line is this: You must have your proverbial "ducks in a row" when steering your business down the road of expansion and profitability. Seek expert assistance and then act upon the professional advice given to you. This will make any type of business financing much easier to attain.
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