Unit 4 – Assignment 2
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Running head: UNIT 4 – ASSIGNMENT 2
Unit 4 – Assignment 2 / Business Funding
David Lee Watkins
American Intercontinental University Online
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Unit 4 – Assignment 2
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Unit 4 – Assignment 2 / Business Funding
There are several choices for funding the bookstore other than a rich relative. The
first and foremost of these is by getting debt financing. Debt financing is a loan that you
pay back on a schedule. These types of loans are commonly done by using personal credit
cards, home equity lines of credit, commercial bank loans, and loans secured by the Small
Business Administration.
The best choice for the owners of the bookstore is the Small Business Administration
secured loans; these loans have been designed specifically for the small business to use
where they need assistance the most. The SBA loan is a guarantee to make a conventional
loan to companies that might not be able to qualify for a traditional loan. These types of
loans are used when the company does not have sufficient collateral to support the loan
request. The SBA loan guarantee works as a substitute for collateral usually needed by the
business owner, this guarantee will pay back the lender if the business owner fails to repay
the loan.

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- Winter '10
- unk
- Business, Debt, business owner
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