A common dilemma to many businesses is how to get money for working capital, expansion or upgrading.  Unless you’ve won a lottery or are independently wealthy, financing has to come from third parties.

Mortgaging existing assets such as a home is one option.  If the equity is available, this option can provide a one-time boost to your business, but has inflexible repayment options that may not be suitable to the business.

Borrowing from family and friends is usually fraught with emotion.  Ensure that you have a legally binding agreement with repayment terms that are achievable and satisfactory to you and your lender.

Utilizing Angel/Venture capital is available to some enterprises.  The repayments can be suited to your needs based on your business plan.  It often entails giving up some ownership of the business and the approval cycle is intense and rigorous.

Lines of Credit are available through financial institutions and depending on your credit history and the amount needed, may require additional security.  The advantage to lines of credit is that only the interest accrued during the previous month need be paid in the following month.  The capital portion is paid down as monies are available.  This option generally has a higher interest rate.

Credit cards are often used, with interest accruing on unpaid balances.  By shopping around, you can often find credit cards with very low interest for the first several months, after which the rate jumps astronomically.

Whatever your financing choice, the preparation and use of a business plan with a reasonable cash flow analysis will lend credibility to your request.