Financing

We have some great news for you – there are more financial resources available to start or expand a business in the Big Country than anywhere we know of. In order to finance your business, you should be able to meet three qualifications:

  1. You must present a reasonable business idea.
  2. You must prove that you are capable of running it.
  3. You must put in some money, equipment or collateral of your own.

There are various ways to finance a business:

  1. Self-Financed
  2. Bank Financing – A bank will normally require a good credit score, a percentage of owner’s injection (usually at least 20%), and a business plan.
  3. Micro Lender – Typically charge a higher interest rate than banks, but sometimes will finance with lower owner injection and/or credit rating. They sometimes accept collateral which a conventional bank might not consider. Two commonly used micro lenders for the West Texas area are:
    1. People Fund
    2. LiftFund
  4. SBA Financing – If you are seeking SBA financing, it must be processed through a bank or other lending institution such as a micro lender or credit union which is authorized for SBA lending.
  5. Private Investor/Venture Capitalist – An investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to funding. Venture capitalists expect a return on the investment either in the form of a loan with repayment terms or a percentage of ownership in the business.
  6. Angel Investor – An individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.