What steps can I take to build capital for my business, and what type of lending sources should I consider?
Capital is the lifeblood of a business and every entrepreneur needs to have a plan for
obtaining it. The problem often found is that most entrepreneurs don't start thinking about
obtaining capital until they need it, which is typically too late! Regardless of the stage
your company is in, you need to have a plan for how you will fund its growth.
As you plan your business funding needs, consider multiple lending sources. The most
obvious source is a bank, but that doesn't mean that banks are the only capital source.
You should have a portfolio of business capital that is a mix of bank loans, lines of
credit, business credit, credit cards, and so forth.
One alternative financing source is business credit (also referred to as trade credit).
Business Credit is an area of financing that every entrepreneur needs to be aware of and
focus time in establishing. Without spending dedicated time and resources to building the
company's business credit the entrepreneur is missing out on the single largest source of lending in the world.
In addition, by building business credit a company is establishing a presence with the
business credit bureaus, like Experian, which help in obtaining credit in the future from
banks and other lenders who report their data.
David Gass, President & Founder
Business Credit Services, Inc.