Examine Personal Savings and Money Market Accounts for reserve funds to invest in your business. A friend or relative may be willing to lend you money at a low interest rate. It is recommended that you set up family loans in a business-like fashion. Equity is the value of the property beyond the total amount owed on it. The risk involved is that the bank can claim your house if you do not meet your mortgage payments.
Banks usually require some collateral against default.
The Small Business Association has helped many small businesses get started, including those unable to obtain financing from other sources. Jones markets t-shirts, shorts, sweatshirts and accessories bearing a cartoon frog with an outstretched hand displaying a peace sign. Obtaining a Business Loan Prepare for the lender interview by anticipating the kinds of questions a lender will ask you. Gather and analyze all the personal financial data that shows you are a good credit risk. Prepare to explain your business plan, dress professionally, and approach your lender as a business professional.