Financing a Small Business

Financing your business is often the critical component to success. There are a wide variety of ways this can be accomplished, depending upon the credit history of your business and how established it is in the market.

Finding financing for your business is just one aspect of your overall financial management of your business, but it is a critical factor for the success of many small businesses.

For those of you who are just starting out, you may want to look at a general overview of financing basics and startup financing.

The hardest question to answer is what kind of capital should you seek? Often we are not aware of options available to us or don't have the time to explore what is possible. It turns out there are a vast menu of choices each with their pluses and minuses.

Using personal or family funds to finance a business is called Boot Strapping the business. Boot strapping can involve personal investment by the founders, their family and friends and/or the owners foregoing salary. It is wise for every business owner to have at least some personal funds at risk since that shows other potential investors that you are committed to the success of the business.

Another way to get funding to start a business is by participating in a Business Plan Competition. In the competitions, you present your business plan before a panel of judges who will determine the winner(s). Depending upon the particular contest, you may receive a substantial sum of money, and even if you don't win, you will get great pointers on running the business.

Business Incubation is also useful for businesses that are starting up and can't afford secretarial support and the other necessities for handling office functions. Comprehensive support for fledgling businesses in the form of reduced rent, flexible space, shared services, access to professional services and an environment of energy and entrepreneurial spirit are commonly found in business incubators.

If cash flow is your primary financial challenge, there are various ways you can make financial arrangements directly with your vendors, Bartering or you can form Strategic Partnerships in which your business partners with one or more closely allied companies, bringing valuable industry expertise, resources, and/or bargaining power to through the alliance.

For those of you looking for external financing, there are various levels available depending upon the stage of development your business is in. External funds can be raised through:

Self-Financing a Small Business

There are many ways to finance a business. One of the most common ways to start a small business is to self-finance. Self-financing a small business can be the quickest root to if only requiring a limited amount of funds. Learn how to find the funds without other investors.

1. Start a part-time business and keep your regular job. You can turn the part-time endeavor into a full-time gig later with hard work. Let the business fund it self and have your regular job to pay for living expenses and the business can slowly gain finances on its own to make more of a investment. This can be a great way to start but expect to spend some money in the beginning to pay for needed equipment and marketing before business traffic takes off.

2. Step 2

   Using credit cards to fund start up costs is one of the most common ways small businesses get funding. However, the use of personal business cards for risky if the business never gets fully started or fails. Interest rates for some credit cards are high and can make starting a business even more costly. It is best to use credit cards to a minimal and use only when you know you can pay it at the end of the month.

3. Step 3

   Selling personal assets, like a extra car or jewelry that is no longer used can help with small start up costs. Depending on what you have laying around, it may not be enough to start a business on.

4. Step 4

   Grants, awards, and contests geared to help new business owners can help with start up costs, but again usually it will not cover all expenses required. Government grants can be found for non-profit and researched based businesses (see Resources below). Contests must be search for individually by keeping your eyes open to public announcements.

5. Step 5

   Personal loans can be use to start off a business if a individual has a good credit score and personal assets appropriate to the amount being borrowed. The Small Business Administration (see Resources below) provides information for a business's looking for a low interest rate loan to start up a business.

England Economy, English Economy, Economy of England, England Economic Profile

The economy of England is one of the world's most important economies, and is the largest in the United Kingdom. England is highly-industrialized and developed, with manufacturing, finance, IT, and pharmaceuticals playing majore roles.

England was the world's first industrialized nation. As England acquired colonies around the world, it became wealthy from the goods and products brought in from Canada, America, and Australia.

The tobacco, cotton, and other imports needed to be processed in England, giving rise to many industrial cities. This continued as the country expanded into India and SE Asia.

During the industrial revolution, mining, steel, and shipbuilding were significant drivers of the economy of England, and continued through both World Wars and up into the 70s and 80s. Increasingly, finance and other service industries began to replace the heavy industries.

One of the largest and newest sectors of the English economy is finance, most of which is based in London. Insurance, reinsurance, investing, banking, business services, and the London Stock Exchange make up the finance industry in England.

The agriculture industry in England comprises about 2% of GDP, and supplies approximately 60% of the country's food requirements. It is highly-efficient and mechanized. Most (about 65%) of the agriculture industry relies on livestock such as sheep and cattle.

The principal crops raised are barley, wheat, oats, potatoes, sugar beets, apples, and other fruits and vegetables. England's agriculture industry relies heavily on EU subsidies. Fishing also comprises a considerable percentage of the English economy.

Tourism employees 6.1% of the working population of England, with London being the major attraction and hub for visitors.

Canada Economy

anadian Economy, Economic Profile of Canada, Canada's Economy, Economy of Canada


Canada's economy is both mature and diverse, benefiting from an advanced services sector, an abundance of natural resources, sound management and free trade agreements.


The Canadian economy is the eighth largest in the world according to the IMF. As of 2007, its nominal GDP was $1.274 trillion, with growth of 2.7%. It is part of the G8 and other 'rich clubs' such as the OECD.

Unlike most developed economies, Canada has moved from agriculture straight to services, which now account for nearly 67.9% of GDP. This industry is very diverse and includes the retail sector, financial services, real estate, education, health, high-tech, entertainment and tourism. All these sectors are developing at a rapid rate with retail and health leading growth. The service industry employs 75% of the 17.9 million working Canadians.

Another important factor in the country's development was the free trade agreement with the US that was signed in 1989, as well as the NAFTA treaty of 1994. These agreements linked several other key countries such as Mexico, Israel, Chile and Costa Rica to Canada and its economy. In January 2008, the country has also agreed to a Canadian-European free trade association that has further developed its robust economy.

Canada is the second-largest country in the world by land mass (after Russia), and is blessed with natural resources. Oil and lumber - and pulp & paper - are two vital industries and exports. According to the USGS, Canada has the second-largest oil reserves in the world, with its large oil
and gas reserves in Alberta, British Columbia and Saskatchewan and the Athabasca Tar Sands. Canadian mines are leading producers of nickel, gold, diamonds, uranium, and lead. Canada is also one of the largest exporters of soft commodities including grains and wheat in particular.

Although manufacturing has never been a dominant sector of the economy, it has been an important secondary industry and does manufacture a significant number of cars and light aircraft, mainly in central Canada.

Canada's sound fiscal management has been another major factor contributing to the country's economic superiority. Prudent management has given Canada a balanced budget throughout the entire last decade. The Canadian economy is the eighth largest in the world according to the IMF. As of 2007, its nominal GDP was $1.274 trillion, with growth of 2.7%. It is part of the G8 and other 'rich clubs' such as the OECD.

Unlike most developed economies, Canada has moved from agriculture straight to services, which now account for nearly 67.9% of GDP. This industry is very diverse and includes the retail sector, financial services, real estate, education, health, high-tech, entertainment and tourism. All these sectors are developing at a rapid rate with retail and health leading growth. The service industry employs 75% of the 17.9 million working Canadians.

Another important factor in the country's development was the free trade agreement with the US that was signed in 1989, as well as the NAFTA treaty of 1994. These agreements linked several other key countries such as Mexico, Israel, Chile and Costa Rica to Canada and its economy. In January 2008, the country has also agreed to a Canadian-European free trade association that has further developed its robust economy.

Canada is the second-largest country in the world by land mass (after Russia), and is blessed with natural resources. Oil and lumber - and pulp & paper - are two vital industries and exports. According to the USGS, Canada has the second-largest oil reserves in the world, with its large oil

International Business Finance

International business finance deals with financing businesses that operate across the geographical frontiers. There are different ways of financing such businesses.
Capital for the international businesses are raised by the following means:

Stock Market

For businesses that operate across nations capital is raised by the issue and the distribution of shares. The total value of the shares issued by a corporation is known as the market capitalization. The following types of stocks are used.

1. Common Stock : This is the most common form of stocks. The holders of common stock have the power to vote in important corporate decisions.
2. Preferred Stock : The holders of the preferred stock has an additional advantage, in that they enjoy a higher priority in the distribution of dividends an assets. The disadvantage is that the preferred stock holders do not enjoy any voting right.
3. Dual Class Stock : Such stocks are issued for a single company.
4. Treasury stock : The stocks that are brought back from the public are the treasury stocks.

Derivative Market

International business finance is also obtained through the derivative market. Derivatives are financial claims whose value is derived from the value of the underlying asset. There are two kinds of derivatives.

1. Futures : The futures contract are standardized contracts which is traded on a futures exchange. It is designed to buy or sell an underlying asset at a specific date and time. The buyer or seller of the futures contract is obliged to fulfill the terms of the contract.
2. Options : the options contract is almost the same as the futures contract with the exception that the contract holder has the choice to exercise the contract. There are two types of contracts- the call option and the put option. Options are traded through a clearing house. The buyer of the option is said to take the long position while the seller is considered to take the short position.

Investment banking : this is yet another method of international business finance.

The role of the investment bank is to issue and sell securities in the primary market on behalf of the international companies. They raise capital for the international corporations through debt and equity.

Hedge Funds : Hedge funds are basically investment funds which charge a performance fee. Hedge funds are different from the mutual funds, pension funds and insurance companies. Hedge funds can deal with the futures, swaps and other derivative markets.

Private Equity : The private equity is any equity investment that cannot be traded in the public markets. There are various categories of private equity investment. They are:

1. Leveraged Buyout : Leveraged Buyout occur when a financial sponsor has control over the company's majority equity through the use of debt.
2. Venture Capital: this type of private equity capital is given by the professionals, institutionally backed outside investors to the new and nascent businesses.
3. Growth Capital: The money that is borrowed under the Growth Capital is used for any corporate purpose.
4. Angel investing : this is the method of investment by a very financially well off individual in lieu of ownership equity.
5. Mezzanine capital: This is a wide term meant to cover unsecured, high yield, subordinated and preferred stock.

Commercial Banks : Commercial Banks also provide international business finance with attractive interest rates.

For more knowledge about International business finance sites like martindalecenter.com, bna.com, smarter.com may be viewed.