Credit is exchanged for high interest rates. Borrowers who take this route should be extremely cautious about spending this money. Entrepreneurs can also look to family and friends for financing. McAtee asks clients planning to start an enterprise in an industry they know well whether there's anyone in the field who might lend them money. For somewhat established businesses, he suggests going to a vendor.
Vendors are very good sources.
Women and minority owned businesses can often find help at agencies set up specifically to aid them. And local assistance from private companies or non-profit agencies may be available to entrepreneurs who fill a particular need in their communities. One such agency, Pasadena Development Corp., was founded in 1977 and is one of the oldest small business incubators in California. After setting up an office in the PDC's building, then growing in predetermined increments and receiving the hand-holding common from incubators, she moved out on her own. Today her company has several divisions and a branch office in Los Angeles.