Because of their emotional connections, they're often willing to lend on the most favorable terms. As a former real-estate executive and alumna of the prestigious University of Chicago executive MBA program, Ms. Ferraro has a Rolodex full of supporters and contacts. Some already are on her advisory board. They might be willing to become investors. Another financing option is bank loans, one of the most popular ways for small business owners to finance their start-up and operating costs.
Many banks also require personal guarantees plus collateral.
Some businesses have success in obtaining financing by borrowing against existing inventory, contracts, accounts receivables and other assets. Savvy negotiators may even use the assets of an existing business to buy that business by assuming its debt. Additionally, Mobile Screening might be able to use the partner's assets to secure more funding or to cut its operating costs. A partner also might be willing to invest its own resources in the company or co-sign a business loan. The other bank-financing option, a personal or consumer loan, is usually somewhat easier to obtain than a business loan, assuming a healthy credit history and personal assets.