A Hitchhiker's Guide to Capital Resources

CUSTOMER OR SUPPLIER FINANCING
If you're aggressive enough to approach your customers or suppliers when you experience a cash-flow crisis or capital shortfall, you may be pleasantly surprised by the results. For some practical illustrations of ways that business owners have tapped into their customers' pocketbooks, take a look at several Inc. articles: " Consumer Finance," " There's No Harm in Asking," and " Resources: Waste-Away Financing."

Inc. has also written about some effective supplier-financing strategies. Consider " When Supplier Credit Helps Fuel Growth," " Financing: A New Twist," and " Capital: Financing Purchase Orders."

DEBT
Don't make the mistake of believing that your only business-borrowing option is a line of credit. Raising Capital: The Grant Thornton LLP Guide for Entrepreneurs, by Michael C. Bernstein and Lester Wolosoff (Irwin, 800 -722-4726, 1996, $50), includes a great 15-page section, starting on page 47, that succinctly steers business owners through a wide range of debt vehicles, including asset-based borrowing, factoring, and callable debt.

Figuring out what type of loan you need, of course, is only half the battle. Savvy entrepreneurs also analyze how much debt their companies can handle. Financing Your Small Business: Techniques for Planning, Acquiring and Managing Debt, by business consultant Arthur R. DeThomas (Oasis, 800-228-2275, 1992, $19.95), includes two absolutely priceless chapters: "Financing Fundamentals" and "Planning Your Financing Mix." Don't sign on the dotted line without reading them.

Finally, explore a Web site maintained by DataMerge. The site includes a "free financing-feasibility search" for business owners seeking to raise $20,000 or more. Think of this as a fill-in-the-blanks approach to money shopping: you provide your address and a brief description of your company, then DataMerge turns up plausible sources of capital. Also useful are some linked articles on topics such as how to spot "bogus lenders." (One hint: they're the ones sending all those unsolicited E-mails across the Internet, boasting how easy it is for them to find you all the capital you need.)

ECONOMIC-DEVELOPMENT PROGRAMS
For a wonderfully comprehensive list of all kinds of small-business support programs, look no further than The Small Business Financial Resource Guide, a 151-page paperback compiled by Braddock Communications, in Reston, Va. The book includes key phone numbers at both the state and federal levels, as well as some valuable extra features like a quickie section on key financial ratios. There's also a very good description of the roles of the "five partners of every loan": the borrower, the lender, the accountant, the lawyer, and the insurance agent. Best of all, you can get the book free by writing the U.S. Chamber of Commerce Small Business Center at 1615 H St. NW, Washington, DC 20062. You can also order it electronically through MasterCard's Web site.

EXPORT/IMPORT FINANCING
Getting involved in the international marketplace can be a great way to boost your company's growth potential, but it can also throw your cash flow into chaos. Foreign collections can be a nightmare, currency fluctuations can destroy profit margins in a flash--and then there are all those tax and accounting glitches no one ever warned you about. Here's where a top-notch reference work can really make a difference. (So can a top-quality accounting firm, preferably one with offices abroad, but that's another matter.) We recommend two: Export-Import Financing, by international banker Harry M. Venedikian and financial writer Gerald A. Warfield (John Wiley & Sons, 800-225-5945, 1996, $69.95), is worth its hefty price tag, thanks to in-depth discussions of a range of financing techniques and of the role played by U.S. banks, government agencies, and foreign lending institutions. A discussion of "exchange risks and opportunities" should be an eye-opener for fledgling international marketers. Exporting from Start to Finance, by international-business consultants L. Fargo Wells and Karin B. Dulat (McGraw-Hill, 800-338-3987, 1996, $44.95), contains a wealth of suggestions on key topics such as letters of credit, methods of payment, and international leasing.

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