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Start-up Capital Funding FAQs for Retailers
Where to Find Cash

By Shari Waters, About.com Guide

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Most new businesses find it very difficult to obtain bank loans, business credit cards or investors. The truth is a great business model and good looking plan may help convince a financier to give you a chance, but all too often start-ups are turned down. Don't despair. Securing the capital will take careful research, negotiating and commitment.

1. How Much Does it Cost to Start a Retail Business?

The research you'll put into your planning will show the startup costs and monthly operating expenses involved in running your retail store. It will also show how long until your business reaches a break-even point.

2. Can I Get a Line of Credit For My Business?

New businesses aren't the only ones in need of cash. Seasonal sales, sudden growth or slow account receivables can leave any retailer in a cash crunch. Lines of credit can help smooth out the ups and downs of cash flow problems.

3. How Will I Finance My Business?

Where you find money to fund your retail business will depend on your personal credit, business credit, the amount your willing to pay for the cost of a loan and other factors.

4. What is Debt Financing?

Some typical sources of debt financing are banks, credit unions, savings and loans, finance companies, and the U.S. Small Business Administration. For smaller loan amounts, relatives and friends are also potential sources of capital.

5. What is Equity Financing?

Equity financing, or equity funding, is trading a percentage of a business for a specific amount of money. Outside investors will want to see an owner also investing their own money to show they are willing to share the risks. While it is possible to attract outside investors, the main source of equity financing is family and friends.

Readers Respond: Finding Start-up Capital for New Retailers