(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

Small Business Financing Options

            
             Bill Jackson wants to start a home remodeling business and is trying to decide whether to "bootstrap" the financing or try a local bank. He needs about $50,000 for start-up expenses. Bill has worked for a local home-builder for years. He doesn't have much money saved, but he does own his home. .
             a. How would a bank evaluate Bill's loan request?.
             b. What should Bill do? Why? (explain the reasoning for your answer.).
             Response .
             Money is inevitable and is the sustenance of any business whether one is starting a new business or managing an existing one. Securing financing (money) is a major factor, especially to start up new businesses. For Bill Jackson to successfully start his home remodeling business money is ultimately needed. Home improvement or remodeling as a practice of making addition or improving on one's home require, aside from skills, money to buy materials and hardware for any improvement projects, usually procure at home improvement stores. The options "bootstrap" and local bank financing available for Bill Jackson is explained below. .
             Bootstrap Financing.
             This relies on entrepreneurs ability to use own money to get business off the ground and meet operational needs or expanding existing business. This implies building business out of little or nothing with no or minimal outside capital and this tend to reduce possible interest to be paid on financing amount.
             Types of Bootstrap Financing:.
             1. Leasing - This is achievable by free up cash by leasing equipment rather than outright purchase. It a way of holding on to funds instead of spending too much on frivolity.
             2. Trade Credit - Looking up for manufacturer or supplier that accept trade credit purchase and business owner to order goods on agreed terms and condition. The good thing here is that there are possibility of cash inflow before repayment due date without no initial cash involvement.
             3. Customers/Client - An issued letter of credit from customers to acquire materials from supplier or manufacturer.


Essays Related to Small Business Financing Options

1. Mattress Company Business Plan

... guarantee was developed which features a 90 day lowest price guarantee, 5 year extended warranty and 1 year comfort trial guarantee. Other special offers include free next day delivery (some restrictions apply) and financing options to accommodate a variety of financial needs. There are several key opportunities that our group has identified in order to improve the firm's growth and sustainability in this industry. An investment ... is caused by the emergence of e-commerce. E-commerce is the buying and selling of products through electronic systems, such as the Internet. The internet an...

  • Word Count: 9743
  • Approx Pages: 39

2. OWS Global Business Plan

... for the US economy has prompted panellists to revise their growth outlook for this year upward. The 0.05 percentage point's upgrade, however, is still very cautious. While very small, the upward revision represents the first upward movement in the outlook in more than a year. According to the forecasts, Mexico will experience one more quarter with negative economic growth ... a tremendous risk and they are committed to back OWS up one hundred percent. They are committed to satisfy the present and future financing requirements, supporting the business in a long-term commitment. IBM has s...

  • Word Count: 10291
  • Approx Pages: 41
  • Has Bibliography
  • Grade Level: High School

3. Business Financing and the Capital Structure

... can be annoying, time consuming and mystifying to study how and where to get capital to develop or enlarge your business. The financing selection between Equity and Debt financing for your business is an examination for all capitalists when they require funds to enlarge a business. At that time a primary question that comes in the mind of capitalist is, "what is the amount ... will have to demonstrate your business decision making down to the minimal aspects. In the case that you and the financer have any resoluble dispute you can end having to sell organizations' shares and depart the...

  • Word Count: 866
  • Approx Pages: 3
  • Has Bibliography

4. Establishing a small business

... . Besides will you remember everything you need to do if you do in your head or write it on a piece of paper. Some of the sources of financing which are recomemded to use when starting a business. Some are Traditional sources which tend to be Banks, savings and loans, commercial finance companies and the SBA. Family members and friends are other finance sources ... will be more likely to provide you with the loan you wish if they know you and your ability in repaying the loan. The legal issues with which entrepreneurs and small business owners are likely to be faced. Are like laws placed...

  • Word Count: 1111
  • Approx Pages: 4
  • Has Bibliography
  • Grade Level: High School

5. ZipCar Business model

... from weekend to weekend. Zipcar is a new commercial car-sharing venture that provides convenient on demand means of transportation. Case Analysis Founded in late 1999, Zipcar's vision and business model have little changed. "Our Vision Providing reliable and convenient access to on-demand transportation, complementing other means of mobility."" (Source: Zipcar.com) Zipcar manages a fleet of ... inventory costs - Cars are Zipcar's main tool and product. Minimizing its cars' cost will increasing profit and revenue. Optional purchasing options should be investigated. As Zipcar is considere...

  • Word Count: 889
  • Approx Pages: 4

6. J.C. Penney - Business Case Study

... reward men and women in our organization though participation in what the business produces. 7. To test our every policy, method, and act in this wise: Does it square with what is right and just? J. C. Penney headquarters relocated to New York City in 1914 to simplify the buying, financing, and transportation of goods. Between the years of 1942 and 1945 more ... Ellen DeGeneres as spokesperson, a simplified pricing strategy, reduction in the number of times prices are marked down, redesigned department stores with a town square area of services and a perimeter of small shops. Johnson's...

  • Word Count: 3513
  • Approx Pages: 14
  • Has Bibliography
  • Grade Level: High School

7. Small Business Establishment, Development and Management

... showing in detail what each phase is expected to cost and how you plan to manage funds to achieve your goal. Some of the sources for funding start up of small business include your local bank with whom you have your personal banking accounts with. This is manly because you are already a customer and showing you want to keep your ... business with them, sometimes this is to your advantage. There are many state and local government grant sources listed at the SBA online website, these are mainly for existing companies or non-profit organizations. The SBA website shows a variety of financi...

  • Word Count: 881
  • Approx Pages: 4

8. Industrial Credit and Investment Corporation - Bank to the Poor

... trust in these groups of women. Once training was completed, the SHGs were empowered to make decisions; including who is given a loan, the terms of the loan, repayment options, etc. This type of empowerment had a positive impact and helped these women realize their full potential. "They consist of greater access to knowledge and resources, greater autonomy ... 000 SHGs had been formed.13 After the organization of a group (SHG); Step 2 involves the Mobilization of Savings (Fiscal Responsibility); Step 3 is the Directing of Savings (Sense of Ownership/Options); Step 4 is Leadership Deline...

  • Word Count: 5004
  • Approx Pages: 20
  • Has Bibliography
  • Grade Level: Undergraduate

9. Home Depot

... of local store workshops. 4. Increase BIY market share by allowing customer to arrange installation on the site, along with purchase and delivery of materials. Pros: • Relatively small capital investment. • Competes against suppliers on Internet, both those offering the same brands and those offering different brands. • Great potential for increasing BIY market, especially ... a source. To be considered in these circumstances, Home Depot must appear when potential customers search the Internet for providers for their projects. VII. Implementation and Control 1. Strategic Business ...

  • Word Count: 6159
  • Approx Pages: 25
  • Grade Level: High School

Got a writing question? Ask our professional writer!
Submit My Question