What loan and credit opportunities are available for new business divisions or subsidiaries?
A company can use multiple sources of funding. Possible lenders include banks, Small Business Administration lenders, venture capital firm, asset based lenders, angel investors and suppliers. Developing a good relationship with a banker can help managers to determine the best financing options. At a bank, companies will generally obtain the best interest rates with the least amount of paperwork and have the ongoing, personal support of a commercial banker. Commercial loan and credit options include revolving lines of credit, commercial mortgages, equipment loans and leases and business credit cards. Why should managers think three times before launching a new part of their business? Expanding a business is a serious endeavor that demands a great deal of energy, resources and money. This new venture can take away focus and attention from the core business, so consulting experienced professionals, dedicating resources, and developing a strong business plan is critical. Businesses should
