How to get 100% finance for your business

Using your credit cards to raise cash for

moneymaking deals has been covered  in our other

guides in this series, and is one way of

financing your business 100%.

Should you go to a bank and apply for a business

loan, the bank will usually only loan you an

amount equal to the amount you will be putting

into the business. In other words, if you have

$10,000 to finance a new business, but feel you

would do better with $20,000, acquiring a bank

loan should not be too much of a problem. Make

sure you have a good business plan, thoroughly

researched and documented, with cash-flow

forecasts for the first one or two years of

trading.

This is all very well if you have the money, but

often we can find ourselves with no capital, yet

see opportunities passing us by from lack of

cash.

It is best to avoid a business loan unless you

have half of the cash to match the bank's other

half. Instead, apply for a personal loan. You can

tell the bank that your loan is for a new car,

home improvements, property repairs etc. As long

as you can satisfy the bank that you are a good

credit risk, and that your credit rating is in

order, the bank will not particularly be

concerned as to what you wish to do with you

money, only that they can make a profit out of

you, and the money will be repaid in full

according to their terms.

As you can borrow smaller sums from different

banks, you do not even have to worry about

borrowing the full amount from one banking

source. Always remember, though, that if you are

making more than one application for a loan,

always submit your applications on the same day.

By doing this, when lenders check against your

credit record there will be record of other

applications other than the application you are

making with that particular bank.

This advise assumes that you have already read

the other titles in this series, particularly

"How to obtain a first class credit rating" and

"Borrow $10, 20, 30,000 with your credit card.