Your Start Up Business Plan MAY require that you consider borrowing

PROSPER.COM Start Up Business Plan

If your start up business plan requires borrowing for a business as your only choice to get started then the best resource for those who may have difficulty borrowing is Prosper.com as this is a consortium of people who have come together to get good returns from good people needing money for whatever the need. The key is to provide accurate, honest information on the application and to create a clear business plan that others can see is realistic and achievable.

If your credit history is reasonable (not necessarily perfect) then your loan will be bid on by hundreds of people. It is recommended that you enter a default amount (when asked on the application what rate you are willing to pay) of upwards of 18%, again depending on your ability to repay and your credit history. These loans can be set up for as little as 6 months and as long as 3 years.

Yes, the rate you pay may be high but you are relatively assured of getting the money (up to $25k) and in a reasonable amount of time. So, if this is all you can do and you have a solid business plan in place then do it. You can pay these loans down with no penalty in most cases so if your business plan is good and you are able to repay it over 12-24 months then the interest rate becomes a non-issue. ($20k at 20% for only one year is $4k but if this is what it takes to get things moving then it’s a small price to pay). So, where necessary, and your start up business plan requires borrowing for a business then you still want to do whatever it takes to get started.

GOVERNMENT MONEYThis is a government link where money can be accessed specifically for online business. http://www.business.gov/guides/finance/

BUSINESS CREDIT CARDS

First, I will recommend two of the very best credit cards for business use as these are easy to obtain and provide sizeable lines of credit depending upon your credit rating and history.

American Express Gold Card: For all ongoing expenses that you expect to pay off each month. This card provides 1 point per dollar on all purchases and has no limits (and more for certain purchases). Most other cards either limit the amount of points they pay or do not pay on every purchase.

CitiBusiness Card: This card, too is liberal with a sizeable credit line and has low rates (especially start-up rates) if you need to actually use the money and pay over a period of months.

Advanta Business Card: Similar to above.

Please note that business credit cards may also use your ss# but additionally will be establishing credit for your new company. This way you will ultimately be establishing credit for your business separate from yourself. Additionally, the points these cards pay add up to significant savings whether used for air travel or purchases.

On the next page I’ve presented three resources that have nothing to do with borrowing for a business but rather are ways of financing yourself while in the process of building your business. Creative Financing for your start up business plan

Plan Your Business