VSCapital is vital for any business, whether it is starting up or looking to grow. How you finance your business can have a huge impact on your operations and your ability to take advantage of new opportunities.
The good news is that there are plenty of choices for business owners looking for financing today. The type of financing that’s right for your small business depends on several factors, including why you need the money, the type of credit or business history you have, and your willingness to take on debt.
In general, there are three main sources of financing: self-financing, investors and loans. Each has its advantages and disadvantages. With self-financing, business owners tap into their own financial resources, i.e. personal savings and retirement accounts, and can enlist help from family and friends. This option allows owners to maintain full control over their business. However, it can be difficult to raise enough money to keep the business growing with these limited sources. Additionally, if the business is not successful, the owner may be left without a financial cushion.
Some companies, especially those that promise strong growth opportunities, may be able to attract outside investors. This option may allow the fastest accumulation of the necessary capital. But that comes with a downside, which is that the owner often has to give up some control of the business by allowing investors to have a say in major financial operations and decisions.
Many owners apply for loans to finance their business. With a loan, you can maintain control of your business without giving up your hard-earned savings or retirement funds. There are many types of loans available to small business owners, so it’s important to determine the best option for your particular situation.
Huntington has helped many small business owners identify financing options for their businesses. One such option is called Lift Local Business, which Huntington launched in 2020 to support minority-, women-, and veteran-owned small businesses as well as businesses located in a low- or low-income census tract. moderate.
Lift Local Business was designed to support small businesses throughout the business lifecycle, from start-up to expansion. The program provides loans, business planning support and other services to help small business owners achieve their goals. The educational component of Lift Local is delivered through Operation HOPE, a non-profit organization that works to equip people with financial tools and education to ensure financial independence. Operation Hope offers Lift Local borrowers a self-guided online course, which allows business owners to work at their own pace to establish a business plan and financial projections.
Under the Lift Local program, businesses can obtain SBA-backed loans from $1,000 to $150,000. Huntington Lift Local Business features include:
- Zero set-up costs
- SBA fees paid by Huntington
- Lower credit score requirements
- Free financial education classes delivered in partnership with Operation HOPE
- Chequing Accounts with Grace® 24-Hour Overdraft Fee Relief and 36 Months Service Fee Waived
- Flexible and longer term repayment options.
Since launching the Lift Local Business program in October 2020, Huntington has provided $28 million in loans to nearly 400 minority, women and veteran-owned small businesses. Of that total, 23 small businesses in West Michigan received Lift Local loans totaling $1.7 million.
Lift Local Business is a key part of Huntington’s $40 billion strategic community plan, which focuses on promoting economic inclusion through access to capital, affordable housing and home ownership. property, as well as community loans and investments. With the 2021 Strategic Community Plan announced in June 2021, Huntington has increased the Lift Local Business program investment from $25 million (first announced in 2020) to $100 million over the next five years.
When it comes to financing your business, it’s essential to explore all of your options to find the best sources of financing for your business operating needs, whether starting up or planning for growth. . Given the options available, you can take steps to secure the capital you need to help your business thrive.
Learn more about the many ways Huntington helps support local and diverse businesses in www.huntington.com/liftlocal.