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Financing message forum where you can get and give insights found nowhere else. Belly up to the table and request funding. Or tell your money tales. Any money talk is fair game except ads.
The Latest Hot Topics:
Show Me the Money!
How Long Will It Take?
Understanding the Time Frame
Timing is one of the most mysterious elements of small business finance. Most people underestimate the time it takes to get a company financed, especially a new business. This leads to anxiety and frustration. Understanding the realities, instead of the dreams of financing can help you prepare, emotionally and financially, for the time period between starting your money search and having the money in the bank.
3. Time benders
Myth #1: I'll get my financing any day now.
Financial institutions, Uncle Sam, and even Uncle Stu need time to make up their minds after reviewing your business plan, weighing the risks, and just getting around to your plan in the stack of business plans on the desk. Remember, you're still building expertise at wooing and choosing investors: That $200,000 in seed money you took a pass on six months ago looks pretty good now that you've learned bankers won't fund your brand new company.
Myth #2: I'll make money on schedule.
Myth #3: I know a lot of wealthy people -- they'll invest.
Myth #4: Everybody else has had trouble with this concept,
but I'm different because I'm better.
Myth #5: I'm in a hot industry; I'll get money right away.
2. How Long to Expect for Different Financing Options
Age of business. Loans to established businesses often move faster.
Amount of loan. A smaller loan gets approved faster, all else being equal, and if the lending institution makes small loans.
Complexity. Quirky or new technology businesses can take longer to get approved. Unusual businesses will take a longer time to find investors.
Specialization. Expect quicker turnaround times from small banks or banks with small business divisions. If you choose a venture capital firm that specializes in your industry, you may get a quicker review.
Imagine your weatherman said you'd better get ready for a long winter... You'd stock up on extra food in the pantry, extra wood for the fireplace, candles and good books to keep body and mind going even if you're snowed in longer than expected.
Well, get ready for the process of getting money in the same way, for it'll probably take longer than you imagine, so just be prepared. Have extra cash stashed away, other ways to make a little income while you're waiting, and plenty of stamina to fuel those efforts you'll have to keep making. But not to worry -- even after the worst of winters, spring always comes.
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