Custom Stitches
Custom Stitches
1. Where would you suggest Andy look for the financing he needs for Custom Stitches?
2. Explain the advantages and the disadvantages of using each source of funding you listed in question 1.
3. Which sources of financing do you think would be most promising for Andy's capital needs?
Finding the capital you need to finance your business can be a confusing and complicated process. Understanding your options helps you move in the right direction and acquire the funds you need.
Here are some options for funding your small business:
Credit Cards
One form of personal debt you should avoid is cash advances on your credit card. It's very tempting and very easy to get cash this way. If you do this you should pray. Pray with vigor. Then ask for forgiveness. This option is very expensive and extremely risky. Credit cards should only be used for short-term expenses, and not as a means to entirely fund a start-up business.
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"moo business cards"Friends and Family
borrowing from your friends and family, especially the rich ones, is a good way for new businesses to get money. It's not uncommon for relatives to make low interest or no interest loans to family members. Just make sure all parties are aware of any risks. You don't want to alienate your family if the business falls on hard times and you have trouble repaying the loan.
Personal Savings
you can use your personal savings or assets that can be converted to cash. If your savings are already low, put off that vacation, drive your old car a bit longer, avoid large purchases -- be thrifty in all areas and you can save faster for your business. Keep in mind that most lenders won't finance 100 percent of your business, so you'll need...