Financing Options for a Bounce House Business.

Do I Need Financing?

The start-up costs to begin a new bounce house business are relatively low. This is what makes it so attractive for many people. You may be able to finance the start-up costs with your personal savings or an established personal line of credit. If you already have your delivery vehicle, a place to store your inflatables and a home computer, you can typically begin your business with a couple inflatables for as little as $5000 or less. Keep in mind that the more you have to invest for purchasing more inflatables, the more your earning potential will become.

Small Business Administration.

A good first step is to ask your local Small Business Administration (SBA) office for help. This organization is tasked with promoting economic growth by supporting small businesses. Its mission is to help you succeed! There are also a lot of general resources from the SBA that aren’t finance-related. www.sba.gov

Bank or Credit Union.

Most banks and credit unions have financing available for small business. To be seriously considered for a loan from these institutions be sure you have a solid business plan to present to them. This will help in determining the viability of your business.

From the Manufacturer.

Many inflatable manufacturing companies do offer their own financing. They may also offer financing through financial institutions they have partnered with. The terms from manufacturers vary from company to company.

Friends and Family.

Friends and family are another source of financing usually with favorable terms. If you feel more comfortable, there are companies out there that help in formalizing a loan between friends or family. Making the loan official may help in reducing any awkwardness.

Credit Cards.

Many business owners use their credit cards to fund their businesses. Credit cards offer the ability to make purchases or obtain cash advances and pay them at a later time. You should use the cash advance approach very cautiously. Most credit cards will charge you 2% to 4% of the face value of a cash advance as a fee.