How to Acquire Funds for Your Startup Business: A Guide to Business Financing Options

One of the most difficult issues for any business, especially a small business or startup, is how to raise funds for projects. You may not be able to fund a business from your savings or friends’ help alone. To that end, many organizations, banks, venture capitalists and government organizations provide funds to businesses that have the potential to turn into something big.

This article discusses two of the most important sources of funds for startups — leases and loans.


Many small businesses and startups prefer to lease property and equipment rather than purchase it, since it is cheaper and less risky in case the business fails. Professional firms help startups hire or lease equipment and provide funds for the purpose. Many companies are dedicated to leasing for businesses in specific industries. Therefore, whether you have an IT business, agriculture or manufacturing business, there is a lease-purchase firm out there ready to finance your business.

Apart from providing leasing and mortgages, finance companies also provide startups with information on other sources of funds. In fact, with the advent of the Internet, you can access information on many different types of funding with the click of a mouse.

Startups may face some initial difficulty in getting a business lease since most leasing companies prefer to work with established businesses. However, there is no reason to lose hope. There are many companies, who specialize in financing startup enterprises. With a little patient research, you will be able to locate some lease-purchase companies willing to finance your business. Many companies even finance individuals working from home, so you will find finance options even if you work from your home office.


You can opt for short-term or long-term loans depending on your business needs. If you wish to finance short-term projects, then short-term loans are ideal. For acquiring assets, however, or for business expansion, a long-term loan might be your best option.

The principal amount of a term loan is based either on the collateral of what is being purchased or on the profits the business anticipates earning during the duration of the term. The term period may be anywhere from 1 to 10 years. One of the major advantages of term loans is that the interest rate is fixed. In a market where interest rates are rising, this is a highly desirable factor for the small business. No matter what the financial situation of the company or the interest rate market, the company will pay the same rate of interest on the loan principal.

Before you sign with any financing institution for a loan, grant or investment, it is best to consult a business advisor who can tell you the pros and cons of each kind of loan. There are many flexible financing options available for startups today, and entrepreneurs need not give up on their dreams or ideas because of a shortage of funds.

Receive the booklet How to Build Business Credit [] by David Gass – President and Founder of Business Credit Services. It will share with you how more than 10,000 businesses across the nation have achieved over $175 million in combined financing in their business name only, all using his patent-pending system to build corporate credit [] separate from your personal credit.

You will also learn the first steps required to getting a b

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Should a Small Business Hire Now?

The Hiring Incentives to Restore Employment (HIRE) Act, which was enacted March 18, 2010, has two new tax benefits that are available to employers who hire certain previously unemployed workers (“qualified employees”).

The first is referred to as the payroll tax exemption. It provides employers with an exemption for the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010. You can claim the payroll exemption either on your quarterly 941 or on your yearly 944.

Also for each qualified employee that the business retains for at least 52 consecutive weeks, the businesses will also be eligible for a general business tax credit, referred to as the new hire retention credit, up to a maximum credit of $1,000 per worker. This credit applies to employees hired after February 3, 2010, and before January 1, 2011. This credit can be claimed in 2011.

Both of these tax benefits will be very helpful to employers who add positions to their payrolls. New hires filling existing positions will qualify if the workers they are replacing left voluntarily or for cause. Family members and other relatives are not eligible for the tax credit.

The new law requires that the employer obtain a form W-11 or a similar statement from each eligible new hire who has to certify that he or she was unemployed during the 60 days before beginning work or, alternatively, worked no more than 40 hours for anyone during the 60-day period.

Businesses, agricultural employers, tax-exempt organizations and public colleges and universities all qualify to claim the payroll tax benefit for eligible newly-hired employees. Household employers cannot claim this new tax benefit.

Janette L. Davis, CPA is the President of Janette L. Davis, CPA, LLC. She has been a Certified P

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