Business Finance Formulas

Business Finance Formulas

Business Finance Formulas

Business Finance Formulas

By: Admin | Date: November 11, 2011 | Categories:

One of the biggest reasons why small businesses fail is due to lack of capital. But what many small business owners may not realize is that financing a small business often becomes a juggling act. It means having several viable options and then knowing what source of financing to use in any given situation.

Though there are numerous finance options available to small business owners, one needs to know where to look and how and when to use them. The following is a brief rundown of the most popular finance options:

Tapping into Personal Assets to Finance a Business

For those business owners who have the means, they can tap into their personal assets to finance their small business. Aside from cash savings, popular options include taking out home equity loans, cashing in on a life insurance policy (called a life-settlement), or using other assets as collateral for a loan. Though this may be a quick and easy source of financing, it goes without saying that business owners may be taking a considerable risk if the venture is unsuccessful.


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