Financing Your BusinessThere are many ways to finance a business. A lot depends on the type of business, what stage the business is in (start-up, growing, mature, etc), and the long-term strategy of the business.
The most common way entrepreneurs finance a business is by using their savings, and/or personal lines of credit (credit cards), and probably the second most common way is by borrowing against personal assets or by borrowing from family members.
Established businesses are more apt to secure lines of credit, term loans, or attract additional investors to assist them with expansion projects.
If equity is needed, an entrepreneur or expanding business may consider approaching a venture capital group or attracting the interest of angel investors.
Before you enter into financing agreements, equity arrangements, or spend a lot of money applying for loans and grants, you should have a good understanding of how your actions will affect your business decisions in the long term. For example, what do the equity investors expect in return and what role will they play in the operation of your business? Will personal assets be required as collateral? How will this affect your ability to secure additional financing if needed?
There are many types of financing instruments that may be considered and evaluated. NOLO provides a good list of Business Financing Frequently Asked Questions. In addition, for some great insight into how to raise money for a new or growing business, go to Entrepreneur.com.
Local Revolving Loan FundsThe City of Monroe and Green County operate separate revolving loan funds. The Monroe RLF is designed to help business locate, expand, and create jobs in the City of Monroe. The County's RLF is designed to help businesses that locate, expand or retain jobs in Green County. For more details regarding these programs, check out their program brochures.
Monroe RLF Brochure (pdf)
Green County RLF Brochure (pdf)