Deciding to become a business owner in North Carolina can be a satisfying endeavor, but only if you do everything you can to set yourself and your business up for success. Attaining adequate business financing can either propel you forward or hamstring your efforts.
Entrepreneur breaks down common sources of business financing. See if any match your preferences.
While one of the more obvious ones, opting for a standard business loan is a good idea if you have your eye on a business that has been up and running for a while. Usually, banks are more willing to finance businesses that have a solid revenue history, so be sure to keep this in mind before submitting applications.
The seller may permit you to make incremental payments until you pay for the business in full. Just like other types of commercial loans, seller financing comes with interest payments. If you and the seller can come to a fair agreement, this type of financing could work out best for all parties involved.
Venture capital/angel investors
You can seek out angel investors or venture capitalists willing to help someone in your position to buy a business. This type of financing is unique in its cost/reward system. The good thing about venture capital and angel investors is that if the business does not do well, you are off the hook in regards to debts. On the other hand, say that the business does as well as you and the investors hope. In that case, your investors receive a sizable chunk of the profits.
This information is only intended to educate and should not be interpreted as legal advice.