Choosing the Right Business Loan
Choosing the right business loan can be crucial to your success and business development, and not all forms of financing are created equal. If your business is struggling, it’s common for owners to bail out their company using their personal financial resources such as credit cards. However, it’s important to keep your personal and business finances separate because mixin them could put your own assets at risk. There are other options including a credit card in your business name, which you can use to build credit for your company. You can use this card to make large purchases and carry more inventory, and also earn cash back bonuses. A business credit card statement is also a good way of tracking and managing your purchases. Business loans are another option to consider for large purchases or business expansion.
Loan Programs for Small Businesses
The state of Kentucky has unveiled a series of three new programs designed to assist small businesses in getting loans. The new programs are in response to the fact that small businesses have had a difficult time securing new financing in the economic downturn, and they are federally funded with over $15.5 million in capital from the US Treasury and the State Small Business Credit Initiative. For every $1 in federal funds, the state estimates that there will be $10 in private lending funds generated for a total of over $155 million new loans in Kentucky alone. This crucial funding can help to fill the gap in the private funding market and allow small businesses to weather the difficult economy intact. According to state analysts, small businesses are slowly recovering from the 2008 recession but are still suffering from damaged credit scores which make obtaining private funding difficult for business development.