Once you have estimated your present and future financial needs, you may realize you need to seek outside financing. There are a number of sources available to the small business owner besides partners, family and friends. For the vast majority of businesses, loan financing comes from the private sector through banks, savings and loans and other financial services institutions. The government is a secondary source of assistance, primarily through the U.S. Small Business Administration's Loan Guarantee Pro- gram. Other financing alternatives include local government programs, and venture capitalists - wealthy individuals and firms which make their money as investors.
Some entrepreneurs borrow against their life insurance policies.
Before filling out a loan request - no matter who the prospective lender is find out what documentation is required. Finally, bor- row carefully. But be careful not to overextend yourself.