Need a Business Loan Or Working Capital For a Small Business

As the economy continues to struggle, unemployment remains high, millions of Americans are looking for work. As a result, many have decided to follow their dreams of starting their own business, therefore creating their own job.

The problem with this at this time is that the primary source of capital for small business owners, commercial and bank loans by the U.S. Small Business Administration have dried up. According to statistics released by the SBA, they made 36% fewer loans in 2009 than in 2008, backing only 44,221 loans from banks for starting, purchasing or expanding a small business.

O.K., so much for the bad news, pessimistic, "I can't get a break attitude." The truth is any ambitious man or woman who is willing to get out and hustle, can raise money for a business, even in a bad recession.

Finding the money that you need, no matter if it is an existing business that needs working capital or money to expand or a start up venture that needs funds to open the doors initially, can be found if you are consistent and persistent with your effort.

A typical scenario is that a person comes up with a great idea for a business, he or she does not have the money to get it off the ground, so they begin to look for help with funding. They start by going online or to the library and they spend a lot of time and energy reading articles and books written by people who have never spent a minute in the real business funding world, trying to tell them where and how to find the funds to start their business.

Then when they have no luck with the advice and information from the research, they decide to go to their local bank to try to get a loan to get started. I can tell you right now, "it ain't going to happen."

Banks rarely, if ever, fund any type of start up business or as a matter of fact, banks will not even fund an existing business unless the owner has a high personal credit score, no debt or is willing to put up personal assets, such as their home for collateral.

Now that we know that the SBA and local bank financing are hard to come by, what other options are out there? The good news is there are many but it will take some effort on your part to find.

Start locally, look for successful business owners who have done what you are trying to do, chances are you might find a possible investor or find leads from this source. Accountants and financial advisers are possible sources, network with as many people as possible.

Don't shy away from contacting possible investors, believe me, if you have an idea and a business plan that an investor can make money on, you will find interest. Follow any lead with a phone call, email or letter. Believe me they won't come looking for you, your funding may be found on your next phone call.

You can also go online and find experts and consultants who have a track record and can provide testimonials from people like you who they helped find the capital to start and maintain a business. Make sure it is someone who has actually done it in the real business world.

One final thought "If you never give up, you can't be beat," keep on keeping on until you find your funding sour