How to finance anything

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A look at the best places to find financing, including private-equity investors, banks, venture capitalists, and non-banks. Also, some common pitfalls to avoid when seeking capital.

Money is easier to get than ever, and there are brand-new places to find it. Here's the smart way to land your share

Remember October 1997? All those Asian markets were taking hair-raising nosedives. Once-invincible Hong Kong looked weak. Closer to home, when the Dow Jones Industrial Average collapsed by a record-breaking 554.26 points, the whole global economy seemed poised on a precipice. The only question was, how bad could things get?

Oddly enough, prospects never looked brighter for Cornelius Geer, "Cam" to his business associates and friends in Middletown, Conn. Geer, the founder and president of Connecticut River Interactive LLC, a two-year-old Internet-development company, completed a deal for a $100,000 financing package from the Small Business Administration during the final days of October, "right in the middle of all that chaos," he recalls.

"The amazing thing," he says, "is that not once during the whole process of finalizing that loan, not once--with all the people we had to deal with to close it--did anyone ever express anxiety about getting involved with us when all those other markets looked so shaky."

He's not alone. Stephen King's entrepreneurial accounting firm, Virtual Growth Inc., based in New York City, raised $250,000 from outside investors during those same tumultuous autumn weeks. "What was going on in those markets was totally irrelevant to us," King says.

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In context of ebusiness , I can say that there are a numerous ways that have been already discussed , but I would still like to say that it is quite difficult . In order to obtain a loan, you might need a well-drafted business plan, accurate cash flow projections, a description of the collateral for security, the debt-to-equity ratio, your financial history and your personal and business credit profiles. You might also need to submit the last tax returns and bank statements from the past three years. Loans come with an interest and you must be careful about the rates too .