To be successful, any business needs a committed owner, a strong concept, realistic goals, strategy and financing. Using your own money is usually a wise choice, but the problem with most new business owners is that they don’t have any of their own. The only real option is to look for a small business loan. Financing is usually categorized into a number of different options, such as debt and equity financing.
The traditional route to getting a business loan from a bank or financial institution isn’t for everyone – especially if you don’t have a business credit history and your personal credit history isn’t great.
However, if you have been in business for at least two years, you will have a better chance of getting long-term approval from the bank. Even if you are a beginner, there may be options for you to get a secured loan if you have several types of collateral. Don’t forget about credit cards too. It can be beneficial for small businesses to establish lines of credit with financial institutions as the company 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 intend to use the funds. Any potential investor or lender will want an understanding of why you are seeking funds, how you intend to use the funds, and how you plan to repay them. Destroy the things for which you need money. Don’t just ask for $10,000. Ask for $5,000 for supplies, $4,500 for equipment, and $500 for advertising. Explain your strategy for how you will profit and generate a return on your investment so that you will be in a good position to pay it back.
Apart from getting a small business loan, it might also be worth considering alternative lenders, such as online lenders, angel investors, crowdfunding, etc.
ALWAYS be open and honest. When filling out any application form, be completely honest and try to be as accurate as possible. All the details regarding your business should be consistent across the board: the loan application itself, official documents and records, social media accounts, and so on. One single type can really ruin your chances.
Best online place to try get a small business loan is with 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 funding through a secure website in minutes. The agent will then contact you to help you understand what to do next.