Money is the one thing all start up businesses need in order to get going, yet it is the one thing that most start up businesses have trouble obtaining. From a lender’s point of view, this is a risky investment. What company wants to lend thousands of dollars to a new business that hasn’t even earned revenue yet? Where can you turn to in order to get a business loan for new business?
There has been an increase in alternative lending in recent years, such as Crowd Funding, but it requires a lot of hard work to reach your goal.
It’s important to understand the different types of loans available for start up businesses. There are some options that vary depending on your needs, specific terms, length of the loan and so forth. For a new business, look for financing that is aimed specifically to new companies with little to no financial history, such as a business credit card, SBA microloan, grant, and so forth.
Before you apply for a business loan for new business, you need to make sure you choose a reliable lender. There are obviously a lot of scams out there that try to take advantage of new business owners. Read a lender’s BBB page and reviews to learn more about it. How many recent complaints have there been? Have they all been resolved? How long has the lender been around?
Legitimate Lenders for a Business Loan for New Business
If you think a lender is legitimate, you’ll need to prove your fundability. Since you probably don’t yet have a business history, you’ll need to create a really good plan that shows the strength of your model and dedication to succeed and grow your company. The plan must detail the goals. Your financial projections should be made clear. Lenders will want to know exactly how you plan to make money.
You might be required to offer collateral – especially if you have no prior business experience or business credit history. This could be your vehicle, piece of property, house, or any other item of value you own. Unless you have a really genius, innovative idea, you likely won’t be able to qualify for a high amount for a start up loan, as they are usually given at relatively small amounts. Still, any money you can get will be helpful.
However, there are some lenders who are more flexible with their requirements and willing to work with you. One organization to consider working with is US Business Funding, which has a good reputation for its flexibility and fast, straightforward application process. Get a free quote on a business loan for new business.