Financing a small business can be a real challenge. Most small businesses obtain their financing from the owner's personal savings, credit cards, home equity, and perhaps borrowing from friends and relatives to get started. Once the business is established with at least a two year track record, many small businesses turn to bankers for loans to purchase equipment and establish lines of credit. Some business owners use factoring to speed cash flow when bank loans and personal borrowing power are not available.

To improve the possibilities of obtaining any of these forms of financing - or even to be able to continue self-financing from company profits - you need to keep track of your financial status. Thus a good set of books and records are essential. Also, by learning how to explain your company's financial performance you can run your business more efficiently and improve your chances of obtaining a loan.

For your convenience, we have divided the finance topic into several areas of interest to small business owners. Just click on the topic below to jump to it.