To be successful, any business needs a committed owner, a strong concept, realistic goals, strategy, and financing. Using your own money is usually a good option, but the problem with most new business owners is that they don’t have their own money. The only real option is looking for a small business loan. Financing is generally classified into a couple of different options, such as debt and equity financing.
The traditional route to obtaining a business loan from a bank or financial institution is not for everyone, especially if you do not have a business credit history and your own personal credit history is not that good.
However, if you’ve had a business running for at least two years, you have a better chance of getting approved by a bank for a long time. Even if you are a new business, there may be options for obtaining 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 as a means to help manage cash flow, as long as you make payments on time.
Increase Your Chances of Getting a Small Business Loan
To really increase your chances of getting approved, show how you plan to use the funds. Any potential investor or lender will absolutely want to understand why you are seeking funds, how you intend to use the funds, and how you plan to return them. Analyze 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 make a profit and how to make a profit on your investment so that you are in a good position to pay it back.
In addition to getting a small business loan, alternative lenders might also be worth considering, such as online lenders, angel investors, crowdfunding, etc.
ALWAYS be sincere and honest. When completing any type of application form, be completely honest and try to be as accurate as possible. All details related to your business should be consistent across the board: the loan application itself, official documents and records, social media accounts, etc. Just one type could hurt your chances.
The best place online to try to get a small business loan is US Business Funding. All you have to do is use the free loan calculator to receive an instant FREE estimate, and then you can apply for funds through a secure website in minutes. Then an agent will contact you to help you understand what to do next.