A survey commissioned by the National Foundation for Credit Counseling (NFCC) found that 35% of American adults are not sure where to get financing to start a new business. Most of those who are uncertain about small business financing are older Americans 45 years old and above.
The findings reveal that 32% of the respondents would seek financing from online lenders, credit unions and banks. About a quarter of them would use personal assets or personal funding.
To help address the problem, the NFCC is offering small business financial education and counseling program supported exclusively by TD Bank and the TD Charitable Foundation. The program provides guidance on several issues including cash flow management, separation of business and personal finances and understanding tax implications for small business operations.
According to NFCC spokesperson Bruce McClary, a good business idea deserves smart funding choices and any uncertainty about financing deserves clarification.