Startup Loans Are For New Businesses
People with brilliant business ideas may face one big obstacle - business financing. Obviously, starting a
business involves expenses and without sufficient funds, it would be impossible to bring those brilliant ideas to life. However, for aspiring entrepreneurs, it doesn’t have to be a dead-end situation. In this article, let’s talk about how start-up loans can help you get over the financial hurdle.
Start Up Business Loans for New Entrepreneurs
As the name implies, these loans are especially made to meet the financing needs of new businesses or start-up businesses. The amount of loan depends on the lender and the type of loan provided. For instance, secured business loans offer a much higher value than unsecured loans.
Most entrepreneurs prefer to apply for a secured loan because of the higher loan value, lower interest rates and more flexible repayment terms. If you’re a homeowner, a secured business loan is an option you may consider. Otherwise, if you don’t have any property to submit, you can seek an unsecured business loan instead.
What are the requirements for start-up business loans?
Specific requirements may vary from one lending company to another. However, the basic requirements usually include your business plan and your loan proposal (the amount of loan you need).
A well-presented business plan is important when applying for a loan. Your business plan should provide all important information about your business. For example, it should clearly show the nature of your business, the products or services you intend to offer, your target market, the financial status of your company, future projections, etc.
If you’re applying for a secured start-up loan, your home title would need to be submitted. Other documentations necessary would be your business licenses, business permits, and business tax identification number. Preparing all these documents can speed up the approval and processing of your start up loan application.
Where can you find start-up loans?
Search the web and you’ll surely find a long list of lenders who offer start up loans. Of course, not all lenders offer the same rates and terms so you’ll need to spend some time studying your options before you can choose the right loan.
Take advantage of the free quotes you can get online. You may also ask other successful entrepreneurs who are already in the industry for recommendations. The most important thing is to be clear about the terms and conditions of your lender before submitting your application. Read your loan contract from the first statement down to the last to make sure that you won’t miss anything.
Once approved, get ready to take on your payment obligations. See to it that you have set a definite repayment plan even before you acquired the business loan. Make sure that you can keep up with your monthly payments to avoid any complications.
Start Up Loans from the SBA
For those have been denied by commercial lenders, the Small Business Administration (SBA) also provides start up assistance for new businesses such as the Microloan and the 7(a) Guaranty program. Acquiring help from the SBA would certainly increase your chances of getting approved. Check out the SBA’s official website for more information.
Read More Startup Loans Are For New Businesses
