Small Business Association: Help Registering Your New Business

Opening any legal business entity these days big or small requires paperwork and a lot of it. Even if you are just interested in expanding on what you already have you will have to look into licensing, business permits, registrations and so much more to become a legally operating business. The small business association has laid out five steps to help entrepreneurs give their feet off the ground and running legally. Crossing all the t’s and dotting the i’s are an important first step in learning the rules to run and compete in the small business world.

1) What type of small business structure your small business will run as?

Sole Proprietorship: This business structure runs under only one owner who pays income tax on profits from the business as if it is personal income. It is the simplest business to run however you assume all the risk.

Partnership: This business structure runs with two or more individuals own a company. Not only do they share equally in the risk but also the rewards of the business.

Corporation: This business structure is what is the most common to businesses. A business is formed under the laws of the state and is a separate entity from the owners. This is beneficial because the risk is shared and limited to the businesses assets and not those of individual owners. The business has a legal existence above and beyond the owners.

S Corporation: This business structure is similar to a corporation but allows for certain tax benefits and allows business profit and losses to be passed on to shareholders. There are certain rules that need to be followed with S corporations so look into those before you begin setting up this type of business.

2) Business Name Registration

In order to legally run your business under something other than your name you must register the businesses name with the government. This will allow you to register for an employer tax id number, all licenses and permits too. Your name is required on all documents, forms and applications that are needed to run your business.

3) How to you get a federal tax identification number?

If your business will have any employees you will need to obtain an identification number from our federal government. If you are running a sole proprietorship and you are the only employee you may use your social security number. You may apply for an employer identification number online or by calling the internal revenue service directly.

4) What about the state?

As with the federal government your state and local governments will have to assign your business an identification number. Also, if you are selling any type of goods you will need to obtain a vendor license/state tax permit. Each state government has rules governing small businesses. It is best to check with them to determine what is required.

5) Getting License and Permits

Each type of business requires different permits and licenses. For instance, if operating a restaurant you need special food handling permits. You must obtain specific industry permits before you open the doors for business.

The small business association provides information designed to give new business owners a look into what it is going to require just getting the business idea going. It is not just about having a store front and claiming that you are going to sell a product. As you can see a lot goes into the background of opening a business. Look to other small business owners and the SBA for information on getting the wheels spinning for your new venture.

Government Small Business Loans to See Your Business Grow

An idea can change the world, for good or bad – that’s a separate issue. But an idea really changes the world – we have all witnessed it time and again. To cite examples, there were groups which invented the internet. And now, using the same platform, there has been something that no one thought that would happen – it has virtually sucked out profits from its competitors and is the Numero Uno in the world; a small startup as a college networking site, evolved into the gigantic $200 billion Facebook – as we know it today!

Small ideas but the ability to implement them in a manner than profits you and the society makes all the difference today! The human brain is so complex and full of ideas that you need not go anywhere else to scratch for ideas. Unfortunately, we only use a part of the brain’s immense, un-comprehended power. Now, that you have got an idea and want to implement it by starting off with a small venture, we all know that you’ll need money for that.

How to Get Funds for Your Small Business?

One thing has been taken care of here and that is – THE idea. Now you require funds; where can you seek funds? There are multiple avenues for seeking the same; however it is the government that people are so comfortable to approach. The government seems to be a source of immense funds, but the question is – is it willing to fund your idea? The answer is simple, if you have confidence in your idea/project the government will also have. However, the government agency – Small Business Association which oversees all this and more has become a bit of investment shy after the recent wave of recession.

However, with rising rates of unemployment and job sacking and mounting debts – the federal government is encouraging small entrepreneurs and wants to help them to create jobs for themselves and grow enough so that it starts generating employment for others. That is the government’s side of thinking. Whatever it is, you have to make sure that you will concentrate on your business and nothing else. The main thing is to make your business stand and make it stand quickly with a solid foundation.

Loans even before starting a business are seen as a debt but that’s fine! At a point o time, every business is in debt but that does not mean even for once that it cannot make profits or generate revenues. It is natural to be in a little debt. That sustains the revenue pull in your business. But one thing to be aware of is that the debts should not mount over the period of running your business. Unless your firm is controlling the country’s economy, the government won’t come and bail you out!

Small Business Association of the government will fund you by providing loans at nominal rates. This amount will be largely helpful for you to start and run your business further on.

Build a Small Business Network to Help Your Business Succeed

As a small business owner you can often feel alone, even when surrounded by many people.

How is this possible? The answer is that many small business owners keep their business challenges to themselves. They don’t want employees, or customers, or suppliers, or family and friends for that matter, to know that they have business issues that might be difficult to manage.

If this describes your business environment, consider building a business network to help you manage your challenges and grow your business.

What is a small business network? In this instance it is a network of either similar or dissimilar small businesses that work together to help each other solve their business issues and also to help each other manage and grow their businesses.

Let’s examine an example of a small business network for similar businesses.

A group of between eight and twelve business owners in the same industry but in non-competing locations set up a peer business network. They get together (either face-to-face or online) at a regularly scheduled day and time (maybe monthly or quarterly) to discuss their small business strategy and issues and they each ask for, and get, feedback from the rest of the group — all experienced business owners of similar type businesses.

Some of the discussion might center on human resource issues such as training, hiring, firing, turn-over rates, and comparative wages or salaries. Other discussions might be on common customer centric issues such as turn-around times, over promising and under delivering, quality, service, handling difficult customers. Some sessions might focus on business planning, marketing planning, sales planning or results from plans.

To form this type of group, business owners could meet through national or international industry trade associations. To make this type of network work, the participants must sign confidentiality agreements and non-compete agreements — even though today the businesses are non-competing, there is no guarantee that tomorrow they won’t be competing. It is important that legal advice is obtained at the start of setting up this type of network — your group will need to know what is allowed or not allowed by government competition acts.

The advantage of this type of network is that all participants already know and understand the industry and can bring that knowledge and expertise to the discussions.

Now, let’s examine an example of a small business network for dissimilar businesses.

This type of network would work best in a group of not less than eight and not many more than twelve business owners (too small and the input is weakened; too large and it’s hard to have a voice or hear what’s going on). This group would get together on a regular basis (likely monthly) and review each business’ progress, operations, challenges, or the designated topic of the month. Since this is a network of non-competing, dissimilar businesses, the group could be local and meetings could be face-to-face.

An advantage for local meetings is that the group would be operating in the same economic climate and would have a thorough understanding of what that means to local businesses. It would be relatively easy to form a local group by meeting businesses through local small business associations.

Topics could be selected in advance by month, by quarter, by year and each business owner would attend a network meeting prepared to discuss issues surrounding that topic. For example, one month’s topic could be about reducing the cost of financing and sharing tips and tactics. Another month’s topic could be about the use of the best and most successful recruiting methods for that local area. Another month’s topic could be on creating a business plan and the necessary tools to do so.

In this type of network it is also important to have confidentiality agreements and non-compete agreements at the start of the network meetings. You will want to have the assurance that if someone leaves the group that they won’t share confidential information with others.

The advantage of this type of network is that you can more easily set this group up in your local market so that face-to-face meetings would not be difficult and that you might actually get more out-of-the-box thinking from business owners outside of the industry who are not constrained by past practices.

For both types of networks, use an outside facilitator to ensure that the group stays on track and that each member gets out of the network what it needs (its reason for joining). The concept of a business network is to provide small business owners with a small business advisory group to test solutions, find answers, change old ways of doing things, and more. In large businesses, that type of network support typically comes from other departments or management. In small businesses, a strong small business network is part of an overall business community that becomes part of the infrastructure for your business’ success.

Resources Offered by the Small Business Association

For those interested in starting a business, the Small Business Administration (SBA), can be an important resource. The SBA is well known as a source for small business loans, but they offer much more. The organization is an outstanding government agency with resources geared specifically to help small business owners start up and stay in business. And even better news is that many of those resources are free of charge.

First founded in 1953, the SBA is an independent agency that provides counsel, aid, and assistance, designed to protect small business interests. Other focuses of the SBA include preserving and maintaining free competitive enterprise, as well as well as strengthening the nation’s economy. Small businesses are a vital part of this country’s existence, providing products and services to consumers while providing income to employees of the company.

Over the years, the SBA has grown and established a system for building the future of this country. Throughout their existence, the mission has remained the same – assisting the American people in starting, building, and growing businesses of various industries. In addition to providing needed services to the United States, this government agency also aids businesses in the U.S. Virgin Islands, Puerto Rico, and Guam.

The services and programs offered by the SBA include contracting opportunities, loans, training programs, and even aid in the event of disaster. Although not all offers provided by the SBA are listed in this article, we have listed some of the key benefits associated with the services offered.

Financial Aid and Planning

Many small businesses fail within the first five years. This failure is often due to under capitalization and poor management. To create and build a small business, you need ready capital, coupled with the right knowledge and planning. SBA can help by calculating finances needed for the business, as well as strategies for proper management. They offer free assistance from business experts. These experts will review your business plan and provide advice on improving and strengthening your plan. You can also utilize their resources to develop your plan.

Disaster Relief

The SBA also has a special division called the Office of Disaster Assistance, which has the responsibility of providing financial assistance to homeowners and businesses in an affordable, accessible, and timely manner. The major benefit is the long-term, low interest loans. If your company were to experience disaster, the SBA would step up to provide assistance for repairing and/or rebuilding.

Miscellaneous Programs

In addition to the two programs mentioned, keep in mind that it has a variety of solutions specific to small business owners. For instance, you could take advantage of online training from the SBA, which includes a number of free online courses. Counseling and assistance is also provided by the SBA, offering help through Small Business Development Centers, Women’s Business Centers, and a number of national training events.

Finally, the SBA is known for reaching out to audiences that many other organizations or agencies would not touch. It has special programs, tools, and resources specifically available to veterans, women, Native American Indians, and young entrepreneurs. Remember, the focus of this agency is to make it possible for anyone to become a successful business owner in the United States. Over the years, the SBA has proven a highly successful entity.

Small Business Funding for Women You Must Know

Starting and running a small business can be very challenging, especially for women. Funding is very vital for any business and can be in form of loans from banks or individuals, grants from private organizations and government assistance. In order to access any of these funds, you need to be committed to your business and have a clear vision to succeed.

You should spend your savings and a considerable amount of your cash flow on your business at the initial stage. This will let your potential investors know that you are serious about achieving the goals you set for your company. At the initial stage, you can get loans from family and friends so that you can to avoid stringent conditions of banks at that crucial stage. Your relatives can also use their connections to raise funds for you in order to start your business.

Furthermore, you can access state aid and your local offices of the Small Business Association (SBA) will be able to assist you in getting smaller grants that are targeted at women. The association can also assist you to connect with investment groups or find local programs that are ideal for women entrepreneurs. There are also SBA-supported micro-loan programs where non-profit intermediaries are involved in disbursing loans to women business owners.

In addition, there are special departments in banks working with women business owners to assist them in making use of the right financial services at the right time. It is important to build a healthy relationship with your banker before asking for a loan and your banker must be kept in close contact to know the health and strategy of your business.

You can also open an Individual Development Account (IDA), which is a matched savings program designed for the provision of funding resources for minority- and women-owned businesses. The IDA program can be accessed at local banks and government will match deposits to the IDA if the business owner meets milestones and go for financial training courses. The monthly account contributions must be on schedule, depending on the size of the asset goal of your business.

It is advisable to consult a trusted financial adviser so that it will be easier for you to get the right funding for your business. A financial adviser will have the necessary information that will guide you in choosing the right funding program and the proper method of applying so that you application will not be rejected.

Business Finance Training and Effective Business Solutions

Business finance training refers to programs that teach individuals how to handle various financial duties. Finance training is similar to finance tips in that both help business owners make better monetary decisions, but training programs offer a more detailed explanation of finance strategies. Training programs vary in price and can be used by the owners and employees of a business.

The most basic business finance training provide information on budgeting, preparing financial statements, managing cash flow, strategizing, forecasting, improving performance, and applying basic procedures and concepts to more effectively manage a business. These programs are recommended for new business owners to help them understand standard business practices. Once these basic methods are mastered, more specific financial training may be looked into.

Advanced business finance training delves more deeply into a certain financial procedure or concept, usually at a higher cost than basic programs. Advanced programs may teach business owners how to set up effective business models, make decisions based on quantitative analysis, manage and control accounts, practice due diligence, measure productivity, and strategize concerning mergers and acquisitions.

Taking part in any kind of business finance training gives a business owner the resources to make more intelligent business decisions that result in increased productivity and profits. Many different types of courses are available either online or at a specified location. Some programs may even offer the option to train at the business. Taking into consideration the needs and abilities of a business is the key to finding the best business finance training.

A business finance solution generally refers to methods of funding and maintaining the finances of a business. Most solutions involve ways of obtaining working capital, but others also offer ways of protecting and increasing that capital.

To obtain working capital, business owners look to finance solutions that offer funding by several different means. The most common means are loans and financing. Asset-based loans use a business’s assets, such as inventory and equipment, as collateral. A business may also opt for a property loan in order to acquire commercial space. Invoice financing, such as factoring, involves liquidating or selling a business’s accounts receivables in exchange for quick funding. Some businesses look to trade financing to supply their inventory. The business will tell its financer the amount and cost of goods needed, and the financer will pay for the goods. The business then repays the amount financed over a specified period of time.

Most companies that provide business finance solutions also offer ways to protect and increase a business’s capital. Credit protection safeguards a business from daily risks, such as customers not paying on time, so that the business does not suffer incredible losses. This makes it much easier for the business to borrow money in the future, and it protects the balance sheet. A finance solution may also offer business insurance plans that increase the stability of a business. The most common types of business insurance are employee and public liability, car, property, and health insurance. These business finance solutions are designed to protect businesses against potential losses.

Functions of Business Finance

Strength and soundness of business depends on the availability of finance and competency with which it is used. The abundance of finance can do wonders and its scarcity can ruin even a well established business. Finance increases the strength and viability of business. It increases the resistance capacity of a business to face losses and economic depression. It is just like a lubricant, the more it is applied to the business, the quickly the business will move. Following headings explain the importance of finance to business:

(1) Initiating Business: Finance is the first and fore most requirement of every business. It is the starting point of every business, industrial project etc. Whether you start a sole proprietary concern, a partnership firm, a company or a charity institution, you need ample amount of finance. It is equally important for profit seeking and non-profit activities. It is equally important for a multinational organization and for a free dispensary.

(2) Purchase of Assets: Finance is needed to purchase all sorts of assets. Even if credit is available some down payment is to be made. Mostly finance is needed at the start of business for the purchase of fixed assets. These fixed assets consume a large amount of initial investment of the entrepreneur, so he may face liquidity difficulty in running day to day affairs of the business.

(3) Initial Losses: No business attains high profit on the first day of commencement. Some losses are normal before the business reaches its full capacity and generate enough revenue to match cost. Finance is necessary so that these initial losses can be sustained and business can be allowed to progress gradually.

(4) Professional Services: Certain business need services of specialized personnel. Such personnel have rich experience in specialized fields and they can provide useful guidance to make business profitable. Nevertheless these services are costly. Finance is always needed so that services of such professional consultants can be hired.

(5) Development: Business is always exposed to change. New innovations and emergence of new technologies replaces old techniques out of market. So in order to remain in the market, it is needed to keep the business well equipped with all emerging tools and techniques. This required finance. New technology is always expensive as it is better than others. So finance is needed to purchase new equipment and keep the business running.

(6) Information Technology: Information technology has now changed the geography of the business battle field. The home markets have now extended virtually to other comers of the world. The whole world can be your customer or competitor. To face such a fierce competition, IT is needed. Skills and competency in IT can perform miracles. But finance is again the decisive factor. It is very much needed to incorporate expensive IT products in the business.

(7) Media War: The advertisement and promotion have now become a vital elements for the success of business. The way a businessman approaches a customer and convinces him to purchase his product has become more important than the quality of product. With advertisement on International media, a businessman can reach the minds of millions of people around the globe. However, advertisement is a luxury which every business can’t afford. Huge finance is required to meet advertisement expenses.

(8) Resource Management: Finance is very essential for efficient resource management. Resources here include capital and human resources. Maintenance of plant and equipment and training of employees all need finance. Establishment of new industrial units, expansion of plant capacity, hiring of well learned skilful laborers – all
these factors can lead to huge revenue but at the first place they need finance to start with.

(9) Stock Investments: These investments are those which are made to hold ample stock of raw materials in hand. Bulk purchase of raw materials is profitable in a sense that purchase discount can be attained and there is no danger of production halts. So companies most often hold huge amount of stocks and raw materials. But such an investment can be made only if a company has sufficient capital or finance to carry out its daily operation easily besides holding huge stock.

(10) Combating Risks: Everything is exposed to one or more risks. A business is also exposed to variety of risks. These risks include natural hazards, burden of any huge liability, loss of market or brand name etc. Finance is needed to make business powerful, so that it can sustain occasional losses and liabilities.

The Primary Cause Of Business Financing Frustration

Finding proper business financing is not easy at the best of times for most small and medium sized business owners and managers.

There are a number of reasons that collectively explain why the business financing market can be so difficult to understand and navigate.

But probably the single biggest reason is the lack of useful information about how the business financing market actually works.

Business financing information and education sources predominantly come in two forms: 1) Text books; 2) Major bank advertising.

If you’ve ever read through a educational finance text book or taken a business financing course, you already know how difficult it can be to apply the theories, principles, and strategies to a small or medium sized business.

Our formal education system provides limited information as to how the market place works, how to plan for financing requirements, how to manage periods of growth, decline, transition, start up, etc.

Sure academic books and courses can go through all these areas in great detail, but is the information practical, real world, something you can relate to and apply yourself as a manager or owner of a small or medium sized business?

In most cases, the answer is a resounding NO.

Most finance text books speak to big business financing dynamics that are not easily transferable to small and medium sized business scenarios.

Outside of the formal education system, the next great source of business financing information is the information provided by the major banks, which they tend to make available to you by the boat load through their broad based marketing campaigns.

Unfortunately, the information by itself seldom helps you determine if a particular institution would be able to provide you with financing, or what would be required to qualify for a loan.

The good news is that business financing sources continue to grow in numbers as more and more lenders carve out a particular piece of the market to service.

In order to take advantage of these alternatives, you need to have a solid approach in place when seeking business financing.

Here’s a short list of things to consider

>>> Develop a solid, ongoing, understanding of both your personal and business assets, income, and cash flow.

Regardless of the business financing model, these elements will always come into play to some degree.

Being able to demonstrate a solid understanding of your business financials is also an indication of your ability to manage the underlying business.

>>> Monitor and manage your personal and business credit.

Small and medium sized business financing is focused on both personal and business credit histories.

Regular reviews of both personal and business credit reports from the major credit reporting agencies are important to avoid errors and credit practices that can severely damage your borrowing power.

>>> Develop your marketing position.

Yes, seeking business financing is a marketing exercise.

When applying for business financing, you’re marketing your business to lending sources and they in turn are marketing their business financing programs to you.

Think of the lender as a customer to better understand what they’re looking for. Then, develop a business proposal that addresses all their potential needs and concerns.

>>> Research Lending Sources

There are lots of business financing sources. But there is also lots of variation in the types of business applications each one is prepared to consider.

Broad based lenders rely on credit history and net worth. As you get more specific in terms of financing application and industry, lender programs become more narrow and can be harder to locate.

You need to consider things like industry, sector, and geography when looking for business financing sources.

Financing consultants and business loan brokers can be an excellent source of information to aid you in this process.

>>> Qualify The Lender

Before you make a formal application, find out if the lender has the programs and lending track record to meet your specific needs.

Too often, the lender is doing all the qualifying.

>>> Compare your options

Depending on the scenario, there can be several financing strategies that could work for your business.

Make sure you take the time to compare before making a decision. The extra time spent could save you considerable time and money in the long run.

>>> Start Today

Regardless of what your business financing needs are right now, you should regularly invest time staying on top of your business financials, monitoring your credit, and researching financing sources that fit your industry and potential future requirements.

When the time comes to acquire capital, your proactive efforts can make all the difference in getting the capital you need with terms and timing that are acceptable to your business.

Business Finance Funding Advice and Commercial Financing Help

The Working Capital Journal is one of several commercial financing resources which should be reviewed regularly by small business owners to assist in keeping up with the imposing difficulties posed by rapid changes in the business finance funding climate. As noted below, there have been some surprising actions taken by lenders as a direct result of recent financial uncertainties. The increasingly complex and confusing environment for working capital finance is likely to produce several unexpected challenges for commercial borrowers.

The working capital finance industry has primarily been operating on a regional and local basis for many years. In response to cost-cutting that has permeated many industries, there has been a consolidation that has resulted in fewer effective commercial lenders throughout the United States. Most business owners have been understandably confused about what this might mean for the future of their commercial financing efforts, especially because this has happened in a relatively short period of time.

Of course, for some time there have been ongoing complex problems for commercial borrowers to avoid when seeking commercial loans. But what has produced a new set of business finance funding problems is that we appear to be entering a period which will be characterized by even more uncertainties in the economy. Previous rules and standards for commercial financing and working capital finance are likely to increasingly change quickly, with little advance notice by business lenders.

Business owners should make an extended effort to understand what is happening and what to do about it due to this realization that substantial changes are likely throughout the United States in the near future for commercial finance funding. At the forefront of these efforts should be a review of what actions commercial lenders have already taken in recent months. The Working Capital Journal is one prominent example of a free public resource that will facilitate a better understanding of the responses by business lenders to recent economic circumstances.

By publicizing actions taken by commercial lenders, this will contribute to these two goals, both of which are likely to be helpful to typical business owners: (1) To highlight controversial bank-lender tactics with a view toward reducing or eliminating questionable lending practices. (2) To help business owners prepare for commercial finance funding changes. To assist in this effort, sources such as The Working Capital Journal are encouraging business owners to report and describe their own experiences so that they can be shared with a broader audience that might benefit from the information. Some of the most significant commercial financing changes reported so far by commercial borrowers involve working capital loans, commercial construction financing and credit card financing. A notable situation of concern is that predatory lending practices by credit card issuers have been reported by many business owners. Some specific businesses such as restaurants are having an especially difficult time in surviving recently because they have been excluded from obtaining any new business financing by many banks.

One of the few recent bright spots in business finance funding, as noted in The Working Capital Journal, has been the continuing ability of business owners to obtain working capital quickly by business cash advance programs. For most businesses accepting credit cards, this commercial financing approach should be actively considered. Business cash advances are literally saving the day for many small business owners because most banks appear to be doing a terrible job of providing commercial loans and other working capital finance help in the midst of recent financial and economic uncertainties. For example, as noted above, restaurants are virtually unable to currently obtain commercial finance funding from most banks. Fortunately, restaurants accepting credit cards are in a good position to obtain needed cash from credit card receivables financing and merchant cash advances.

Small Business Finance Success Improves With Realistic Options

The goal of being realistic when seeking new commercial loans and working capital financing will help commercial borrowers avoid a number of commercial finance problems. With proper preparation business owners should be in a better position to obtain new financing despite the difficult challenges impacting most working capital loans and small business financing. Nevertheless it should be anticipated that terms of financing will be different from prior commercial financing. Because of recent commercial lending difficulties, business owners actively assessing the most effective options for their small business finance decisions are likely to find the smoothest path to business loan success.

In view of volatile conditions which have recently impacted credit markets, this will not be a simple task. A very common example of the problem is illustrated by how much misinformation and confusion there has been about business financing and working capital availability. Getting more accurate information about what is realistically possible can be one of the most difficult challenges for commercial borrowers.

When seeking to identify realistic choices in a confusing working capital management climate, a number of harsh realities must be confronted by all small business owners. For most current commercial financing decisions by business owners, there are several major factors to anticipate. In the first example, additional small business loan collateral is being requested by most commercial lenders. Second, many regional and local banks have discontinued lending for business financing and working capital. In a third example, businesses which are not currently profitable or not current in their debt payments will have extensive difficulties. Fourth, business construction funding currently is very limited in most areas. In a fifth example, lenders are eliminating unsecured business lines of credit for most small business owners.

Despite the new business financing limitations just noted, there are practical working capital options for small business owners to consider. An increasingly effective commercial financing option in the midst of an uncertain economy is a merchant cash advance program based on credit card processing activity. Even though this commercial funding option has been available for a few years, it has not been used by most small businesses. For most businesses which accept credit cards, merchant cash advances should be evaluated as an important tool for improving business cash flow. Small business owners wanting to pursue this financing option should consult a business financing expert who is knowledgeable about this working capital management approach as well as other small business loans.

Even though working capital loans are not as widely available as they were just a few months ago, this kind of small business financing is still in fact obtainable. Since some of the largest providers have stopped making these business loans, the main change for business borrowers is the likelihood that they will be dealing with a different commercial lender. Small business owners will benefit from finding an experienced and candid business financing expert to assist in evaluating realistic options because the most effective working capital financing providers are not aggressively marketing this capability.

As stressed above, when making commercial financing decisions it is becoming increasingly important for business owners to first determine their effective business finance funding options. Because of recent volatility in financial markets, this task is likely to be much more difficult than most commercial borrowers realize. It is advisable to explore commercial finance options that might be necessary if economic conditions change even further even for business owners who are satisfied with their current working capital financing arrangements. The use of Plan B contingency financing is an important tool to assist commercial borrowers in this process.