Financing Sources Birmingham AL

Money is of extreme importance nowadays. Almost everything that we do involves money. The same is true if one wants to venture into business or buy a home which is one of the basic needs for survival.

Local Companies

AXA Advisors
205 970-5286
3500 Colonnade Parkway, Suite 150
Birmingham, AL
LPL Financial Services
205-215-9986
2057 Valleydale Rd
Birmingham, AL
NEXT Financial- Riverchase Branch
205-383-4227
2153 Riverchase Office Road
Birmingham, AL
Cit Small Business Lending
(205) 824-2810
Birmingham, AL
Green Tree Servicing
(205) 298-8062
3500 Blue Lake Dr
Birmingham, AL
First Atlantic Mortgage
(205) 941-3314
Birmingham, AL
Jeffco Finance & Discount Co
(205) 322-5594
200 28th St S
Birmingham, AL
Oak Tree Mortgage Inc
(205) 785-6116
2900 Ensley Ave
Birmingham, AL
Cit Group-Equipment Financing
(205) 982-9930
Birmingham, AL
Ford Finance Co Inc
(205) 780-5691
1500 3rd Ave W
Birmingham, AL

In general, business people can choose from the two types of financing, the debt and equity financing. Equity financing is the type commonly used by small or growth stage entrepreneurs. The sources for this type involves the center of influence that trusts the entrepreneur, such as friends, relatives, family members and other people interested in investing their money in the business. However there are also capitalists who are ready to take the risk of financing small businesses. These capitalists may include financial institutions, authorized government agencies or well-to-do individuals in society. There are also venture capitalists that finance new business in the industry to get equity. Businesses that have been in the industry from three to five years are preferred by venture capitalists. They have various methods to manage or deal with the businesses that use their financing or invested money. They can influence the decision making policies of the business in the event its performance does not come up with the expected result.

Another general type of financing is debt financing. This type has varied sources which include Small Business Administration Loans, commercial loans through banks and personal loans from family, relatives and friends. The government recognizes the importance of business in the economy of the country and that is why they offer programs that can encourage the growth of small enterprise by having their own financing agencies tp help a lot of young business people and entrepreneurs. Debt financing through banks is the traditional means to fund a business. The banks act as a short term lender for the business person to have the needed money to buy equipment and machineries necessary for the business to flourish. The SBA or Small Business Administration Loans are used in the case of local banks. The loan that can be acquired can be from $5,000 to $2,000,000.

From these two general types of financing branch the various kinds of financing involved - not just in business but in other fields as well. A few of which are piggyback financing, owner financing and creative financing. Piggyback financing is used by home buyers who want to avoid mortgage insurance which is required when the mortgage is more than 80 percent of the purchase price. Through piggyback financing, the borrower can have two mortgages with costs that may vary. Owner financing happens when the owner or seller of the property is the one financing the buyer so in this case the owner acts as the bank. The buyer in turn can pay the needed amount monthly or whatever may be the agreement instead of going to the bank for financing. Creative financing happens when the house buyer has a third party lending institution which can be a bank or a loan agency.

About the Author:

David Arnold Livingston is a business owner and entrepreneur with many years of finance experience. Visit: http://www.financingfor.com for lots of great financing options and ideas.

davidarnoldlivingston@visioncoaches.com


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Featured Local Company

AXA Advisors

205 970-5286
3500 Colonnade Parkway, Suite 150
Birmingham, AL
www.jamestchapman.com

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