Funds And Financing For A Small Business

Running Head:Lake Shore Book Store (funds and financing)Gregory KittleApril 17, 2008AIU OnlineAbstract     How I am going to fund my Lake Shore Used Book Store. I will be using three different forms of funding. They are government grants, government bonds, and line of credit. I will explain how they work and the risk involved in each one. For the larger expenses I will have to use financing. I will use two different forms of financing to finance my business. They are small business loan and business credit card. I will also explain how each of these works and the risk involving each one.     In my Lake Shore Used Book Store all my funding has come from a rich relative. I have come to the point I am ready to go out on my own and get my own funding. First I would like to do is get a small business grant. A small business grant is free money from the government to start any type of small business. To qualify for this kind of funding I have to be a United States citizen. Small business grants do not require credit checks, collateral, security deposit, or co-signers. You can also qualify even if you have had a bankruptcy or bad credit. This type of funding really does not have any risk involved. The money does not have to be paid back. The only problem with a government grant for small business is that the funds may be limited. So you have to apply before the funds are gone.     I will also get a government bond. A bond is a debt security, similar to an I.O.U. It is the most secure, because the government backs them. So there is very little risk in government bonds. The issuer promises to pay a specific rate of interest during the life of the bond until they repay the face value of the bond when it comes due. So you ...
Word (s) : 1094
Pages (s) : 5
View (s) : 744
Rank : 0
   
Report this paper
Please login to view the full paper