Your Business's Financing Profile

Most entrepreneurs consider their resource pool to consist of whatever personal assets they're willing to sink into the business, and whatever money they might be able to get through a local bank loan. Yet, a number of alternative (or additional) financing options may be available to you.

To assess whether your business can take advantage of any of these financing options, you should begin by realistically evaluating the investment profile and creditworthiness of your enterprise. The basic things to consider are:


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Most financiers will request certain financial statements and a business plan from you before they are willing to invest in your business. In order to be prepared for this scrutiny of your business, your should make your assessment of the creditworthiness and investor appeal of your business before you develop a business plan. While the plan should reflect your personal business goals, keep in mind who your audience is, and draft the plan so that it sells your ideas to people who are in the business of making money.