Acquiring startup funds is one of the biggest challenges for most new business owners. It is said that "it takes money to make money," but how and where do you begin when you have no single cent? Regardless of how resourceful you are, there is always a need for some finances to either deliver a service or develop a product. Unfortunately, getting the seed capital is a great challenge.

 

Lack of a Track Record

 

The lack of a proven record of entrepreneurial activities and success is one the major handicaps when seeking for working capital from merchant cash advance loan. In essence, investors need to put their investments in a sure thing, which promises to bring about returns. If your brand or business name is not synonymous with big business and profits, your business plan may be acceptable, but never read in its entirety. No sound investor wants to play a blind gamble on a novice.

 

Lack of a Clear Plan of Business

 

 A clear business plan cannot guarantee funding on its own, but lack of one is a sure guarantee that you may never get business funding. The fact is no investor wants to put his money in an open-ended project that lacks a clear plan or structure towards making profit. Ideal investors often want to know the amount of funding you need, how the funding will be apportioned, when the use of the funds will begin bringing returns. A mere word of mouth may be a clear expression that you have no clear plan towards your goals, and any investor would think that giving you their money would be a poor choice. Try to present a plan with dates, targets, numbers, and clear plan that weaves them all together into a comprehensive plan. For more facts and information about business loans, you can go to http://www.ehow.com/how_6742627_apply-loan-online.html.

 

Lack of Credentials

 

Based on how much funding you need and the entity from which you are seeking the business loans, your credentials are a significant factor. For example, if you are seeking for finances from a bank for real estate investment you may be required to fill out forms and provide more information about your qualifications. For example, the bank may ask whether you have ever managed rental property. The institution may also ask whether you have ever obtained a business degree or worked as a property manager. If you lack all of these credentials, then the investor may simply presume that you are unqualified to get into such a business.