Millions of Americans have the dream of business ownership, to be their own boss and create a truly successful business. With a big dream there is also a big price ticket that goes along with it. Startup costs can greatly exceed one’s personal savings, sending them on the hunt for alternative financing options.
If you are ready to start turning your dream into a reality, startup loans could help. Because your business has yet to establish any credit history lenders may be reluctant to approval a startup loan. This just means that you may have to work a little harder and wait a little longer to get the financing your business needs.
Many lenders are going to look at your personal credit history, it is important to review your current credit report and make any disputes on the negatives for you account before submitting a startup loan application. The lender may also want you to put some of your personal savings up front to show that you are truly committed to your new business, both personally and professionally. You may also be asked to secure the loan with collateral such as your home. There are many ways around the lenders to get your new business the loan approval it needs to start growing.
If lenders are still turning you and your business idea away, the Small Business Administration may be able to help. While the SBA does not offer the loan themselves, they do offer a promise to a traditional lender that the loan will be repaid.
Each year the SBA aids small businesses and startups in obtaining loans. The lending process can take a bit longer than a traditional loan but it is well worth the wait. Your new business can get a low-interest startup loan with a fixed repayment term. This can open up the pathway to success in your new small business.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.