If you need financing to launch your new small business, there are a number of ways to get those needed funds and put your dreams on a secure financial footing. But a solid, defensible business plan will be the first requirement.

Commercial banks are the most visible lenders to small business. Your business plan should include specific reasons why the loan is necessary, and a cash flow analysis to show your ability to repay the loan. The loan officer will also want assurances that the firm's management is capable of achieving these goals. Don't expect the lending institution to provide all of your capital needs. Your banker generally wants to see at least 20 percent of your own money up front as security to guarantee the loan.

If the chances of obtaining a business loan from a commercial source appear slim, you still have several options. You can use personal assets as collateral for a personal loan rather than a business loan. If you are truly committed to your business idea, you may consider mortgaging your house. Don 't take this decision lightly, however. Your family's welfare will be at risk if the business fails.

Another option is a U.S. Small Business Administration (SBA) guaranteed loan, available through many banks. Keep in mind that the loan application must meet both the bank's and SBA's loan application requirements. On the other hand, the SBA can be a little more lenient about factors such as real estate value and inventory assets in the application process.