bootstrapme
Sources of finance for bootstrappers
Filed in archive How-to by Shawn Hessinger on June 21, 2006
Sources of finance for bootstrappers
I meant to post this link a while ago then found it again the other day when going through my "favorites".

Excerpted from the Small Business Encyclopedia, here are six possible sources of financing for the bootstrap entrepreneur that may not be for everyone depending on the limitations of your resources.

Some of the suggestions could appeal, however, to someone trying to expand an existing business without going into debt. Recommendations include:

• Negotiating "trade credit" with suppliers giving you a longer period to pay for what you buy without interest

• "Factoring" or selling your accounts receivable to a finance company at a discount and letting them handle collection

• Getting a customer to write a letter of credit when placing an order to be used as security when purchasing from suppliers

• Leasing instead of buying any facility you require or financing it with a long-term specially structured payment plan

• Paying for your equipment over time instead of purchasing it outright

• Leasing everything from copier machines to company cars instead of purchasing them (This can be difficult nowadays since companies like Xerox sometimes refuse to lease to a new account)

Benefits of this approach include more equity and less debt for your business giving it greater worth in the long run, according to the link.



Permalink: Sources of finance for bootstrappers
Tags: entrepreneurs  finance  sources  business  bootstrappers  sources+finance  finance+bootstrappers  personal+ 
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/25448
img Addthis img Ask img Blinklist img del.icio.us img Digg img Fark img Facebook img Google img Lycos img Ma.gnolia Add this page to Mister Wong Mr Wong img Netscape img Netvousz img Newsvine img Reddit img StumbleUpon img Slashdot img Tailrank img Technorati img Wink img Yahoo

Vote for Sources of finance for bootstrappers:

  • Currently 4.80/10
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
Rating: 4.80 out of 5 vote(s) cast.
 
Subscribe
Share It
RSSrss
See all blog subscribe options
Google google
What is RSS?
Yahoo! yahoo
Addthis Subscribe using any feed reader!
Bloglines Bloglines
Newsletter

TwitterFollow us on Twitter!