To be successful, every business needs a dedicated owner, a strong concept, realistic goals, strategy and financing. Using your own money is usually a smart option, but the problem with most new business owners is that they don’t have money of their own. The only real option is to get a small business loan. Financing is usually divided into different options, such as debt and equity financing.
The traditional way to get 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 that great.
However, if you’ve had a business for at least two years, you have a better chance of getting approved by a bank for a long time. Even if you’re a start-up, there may be options for you to get a secured loan if you have some sort of security. Also, don’t forget the credit cards. It may be beneficial for a small business to set up a line of credit with a financial institution as the business grows to 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 approval, show how you want to use the funds. Any potential investor or lender will definitely want to have an understanding of why you are looking for funds, how you intend to use the funds, and how you plan to repay them. Break down the things you 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 to make profits and get returns on your investment so you’re in a good position to pay them back.
In addition to 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. Be completely honest when filling out an application form and try to be as accurate as possible. All the details about your business should be consistent across the board: the loan application itself, official documents and records, social media accounts, and so on. A single type could actually hurt your chances.
The best place online to try it out Getting a small business loan is with US Business Funding. All you have to do is use the free loan calculator to get an instant, FREE quote, and then you can apply for financing through a secure website within minutes. An agent will then contact you to help you understand what to do next.
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Wendy is now a financial analyst and writer. Wendy has been writing about finance and personal finance since she was a sophomore in high school. She has also been writing for several online publications and published in The Huffington Post, and Forbes Woman.
Wendy is a credentialed financial analyst and has experience working with financial institutions and businesses. Wendy is also a certified financial planner. When Wendy's not writing, she enjoys tending to her many plants, watching TV, and spending time with her family.
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