(NC)-For small business owners whose personal resources can be stretched, financing a business or its growth becomes a critical concern. For many, strategically managing business and personal credit is the difference between creating a large legacy of success and closing up shop for good.
There are many options for both new and existing businesses to secure financing to expand or start a new venture: government grants, venture capital firms and private foundations are examples. Of course, some also turn to relatives or friends who are willing to place their trust in what is hopefully a sound investment.
Banks and other financial institutions are great business allies for those looking to maximize their growth potential. By providing customized solutions based on a business's individual need, entrepreneurs can uncover equity to help achieve both short and long term business goals. Options may include personal credit - for example, credit cards, vehicle loans or home mortgages - or business credit.
Some types of business credit options include:
• Short-term loans - probably the most common type of business credit. Usually paid off within a year and can help a business temporarily in need of assistance overcome a brief or seasonal lull in cash flow.
• Intermediate-term loans - typically have maturity dates between one to three years and can help businesses increase their working capital, open new offices or purchase new equipment.
• Long-term loans - usually arranged when the scheduled repayment is expected to exceed one year. Assets could be a new building or land, or a new computer system. The principal is repaid over a period of time and is directly related to the useful life of the asset.
Customizing loans to best suit the needs of a business is common - and critical - when dealing with any bank or financial institution.
"Business owners must make credit decisions based on their needs and their business profile," said Christine Morris, vice president of TD Canada Trust Business Banking. "Repayment schedules and interest rates can be flexible enough to assist a business as it is today and where it wants to be tomorrow."
A financial injection can be just the boost a business needs to grow to the next level. You can see what business credit options can do to help grow your business online at www.tdcanadatrust.com/smallbusiness.
Credit: www.newscanada.com