To be successful, any business needs a committed owner, a solid concept, realistic goals, strategy, and funding. Using your own money is usually a smart option, but the problem with most new business owners is that they don't have their own money. The only real option is to seek out a small business loan. Funding is generally categorized into two different options such as debt and equity financing.
The traditional route of getting a business loan from a bank or financial institution is not for everyone – especially if you don't have a history of business credit and that your own personal credit history is not that good.
However, if your business has been in business for at least two years, you will have a better chance of being approved by a bank for a long time. Even if you are a start-up, there might be options for you to get a secured loan if you have some type of collateral. Don't forget about credit cards, either. It can be beneficial for a small business to establish a line of credit with a financial institution as the business grows to help manage its cash flow. , as long as you make the payments on time.
Increase Your Chances Of Getting A Small Business Loan
To really increase your chances of getting approved, demonstrate how you plan to use the funds. Any potential investor or lender will absolutely want to understand why you are looking for funds, how you plan to use them, and how you plan to pay them back. Break down the things you will need money for. Don't just ask for $ 10,000. Ask for $ 5,000 for inventory, $ 4,500 for equipment, and $ 500 for advertising. Explain your strategy on how you will get profits and get the return on your investment so that you are in a good position to pay them back.
Besides getting a small business loan, it may also be worth considering other lenders, such as online lenders, angel investors, crowdfunding, etc.
ALWAYS be frank and honest. When filling out any type of application form, be completely honest and try to be as specific as possible. All the details about your business should be consistent across all areas: the loan application itself, official documents and records, social media accounts, etc. Just one type could actually hurt your chances.
The best place online to try get a small business loan is with US Business Funding. All you need to do is use the free loan calculator to receive an instant FREE estimate, then you can apply for financing through a secure website within minutes. An agent will then contact you to help you understand the procedure.