Discuss in a 450 words:
Sources of Debt Financing
•Briefly describe a small business you could envision yourself owning and discuss the most appropriate source of debt capital for that business. Explain your rationale.
•From the e-Activity, discuss how you could best use an SBA loan to get your business running or expanding. Provide specific examples to support your response.
Briefly describe a small business you could envision yourself owning and discuss the most appropriate source of debt capital for that business. Explain your rationale.
•A small business that I could envision myself owning is a small bakery/cafe. In the area of Orangeburg, SC there are no cafes and only one small bakery, where they specialize in wedding and birthday cakes. Also the bakery is only open during common business hours from Wednesday-Saturday. The most appropriate source of debt capital would be taking out a small business loan or opening a small line of credit for the business. They both allow founders of the company or business to retain ownership and control the company. These options gives the owner financial freedom, including these options being less expensive over a long-term period.
•From the e-Activity, discuss how you could best use an SBA loan to get your business running or expanding. Provide specific examples to support your response.
•I could best use an SBA loan to get my business funning or expanded by using the 7a Loan program, a Microloan, or even the CDC 504 Loan Program. The Microloan offers amounts up to $50,000 and can be used for startup costs for small businesses. The 7a Loan Program also helps with startup and expanding costs, while the CDC 504 Loan Program helps more with long terms goals, such as expenses of lands and buildings. For running the business either program can help with leasing, startup costs, and all expenses. Expanding can help with down payments for a new building or location, new equipment, or even new products for inventory and stock.