If necessary, revise your estimates. Upon commencement of operations, compare your actual results against your projections, and update your financial forecast. This should tell you in advance when you need to start planning for additional capital. Take action when you see a financial problem developing. The time it takes to run through the computations above should be considered an investment in the future success of your business.
Commercial banks offer a variety of types of financing.
The term loan may extend up to 5 years, secured or unsecured, and is often supported by a business loan agreement. The SBA provides guarantees on bank loans. Loans are made through the agency's preferred lenders. Financing is made available to manufacturers, wholesalers, retailers, general construction and service businesses. Loan proceeds may be used to construct, expand, or convert facilities, purchase machinery and equipment, acquire inventory, and working capital.