Four Fundamentals of Financing

Estimate the amount of funding you need

To secure financing for your business, start at the beginning: how much money do you need and for what?

• The SBA offers some tips on estimating startup costs.
• SCORE counselors can also help you determine your startup or expansion financing needs

Determine the best source of funding

Funding for startup and growing businesses often depends on your stage of business and the amount of money you need.

The Business Owner’s Toolkit offers an overview of business financing and their Quick Pick chart identifies funding sources based on stage of business.

Repairing Your Credit

The SBA also offers information about Borrowing Money, including a discussion of the importance of your credit rating. Most outside lenders will look for a credit score of around 700. If your rating needs help, check out these Credit Repair Resources.

Put together a business plan

Most outside financing sources will require a business plan that outlines how and when the funder will be repaid.  For help with business planning, including cash flow projections, go to our Plan Your Business section.

Get information about various types of funding

You know how much money you need and the most likely funding source. Now get more information about the types of funding sources.

• Friends and family

• What kinds of loans are available

• SBA/Bank loans

Missouri Finance Programs
Missouri offers a number of programs designed for specific industries and situations:

• Loan funds

• • Savings funds

• Business incentives

• Grants and loans for agriculture

Equity financing
Equity financing requires that the business sell a portion of the business in exchange for money. Missouri boasts:

• Angel investment

• Venture capital and equity funds

Missouri also hosts an annual venture capital forum through InvestMidwest.

The Money Game, a Kauffman Sketchbook, describes where entrepreneurs find money.