secondary funding for used book store

Who 's Funding the Store

Who 's Funding the Store

Who 's Funding the Store : Why Traditional Funding

Sources Can 't Bail You Out

Who 's Funding the Store : Why Traditional Funding

Sources Can 't Bail You Out

In today 's economy even larger , businesses that have had easy access to capital , are failing and unless you are a big auto-maker or Wall Street investment firm , you face having to pay back mountainous debt , to creditors . As the new owner of a small bookstore , what can I learn from the

state of our economy

Sadly , I ignored the advice not to borrow from my relatives . Now , like other historic businesses , I must re-evaluate my current operating model , raise capital to continue operating and decrease my dependence on debt and risky funding sources

Before our nation 's current financial meltdown , traditional funding sources seemed safe ' - but , I didn 't want to take chances . This time I gathered information about my options , and this is what I found

Traditional Funding Sources

Traditional source Qualifications Risk Reward

1 . Bank Loan Must meet minimum income qualifications , have a viable business plan Market rate interest on a loan sometimes collateral required debt , loan must be repaid with interest

2 . Credit Cards Must be eligible to receive (sometimes not based on income ) Above market interest rates if low income debt , loan must be repaid with interest

3 . Angel Investors a well-developed business plan , management team proven their business idea own capital Angels usually...