To run a business, you need money, that’s a given. Sometimes you have the funds but many times you’ll need a loan.
This post covers many options related to business loans. Have a look at each section to gain a broad knowledge of the business loan process.
Each section contains hand-picked resources that go into depth and offer tips you can use when you’re ready to apply.
A Collection of Articles About Small Business Loans
How to Get A Small Business Loan
Questions to Ask Before Applying For a Loan
Identifying The Right Business Loan
There are many types of business loans on the market. This section covers tips and resources to help you identify a loan that’s the best fit.
Have a look at the articles I have selected below to identify what’s best for you.
Find Out if You Qualify For A Business Loan
Documentation and Information Needed
When applying for a business loan you don’t just walk to the bank and say, “Hey I need a business loan,” It doesn’t work that way. You need documentation that the bank will use to determine if you qualify for a loan.
Banks are in the business of lending money, but they’re not in the business of losing money.
The documentation you have will allow them to assess if your business is high or low risk and if you can afford to pay the loan back. Have a look at the articles below that outline the documentation you need to apply for a business loan.
What Is an SBA Loan?
SBA loans are government-backed loans. The government guarantees these loans and makes it easier for businesses to qualify.
The government backs small business loans because it benefits the economy. When a small business succeeds, it creates job opportunities as well as contributing the amount of money flowing through the economy.
Multiply this process by hundreds of thousands of businesses, and you have an opportunity to stimulate the economy.
Small Business Loans Rates Comparison
In this section of the post, you’ll be able to access resources that offer business loan rate comparisons.
As a new business owner, you may pray that you get approved for any loan, but as an established business owner with good credit, you have options to choose and pick which loan suits your business.
When you’re in this situation, you want to choose the best rate and loan terms. When you’re borrowing a large sum of money, a small difference in the interest rate matters.
Small Business Loans Alternatives
As a new business owner, you may not get approved for a business loan. There are alternative ways of getting funding. The resources below outline the options available for funding your business.
A few bank loan alternatives that come to mind are borrowing from friends, family, using credit cards, mortgaging your house, selling some of your assets, etc.
Please note all the above alternatives I have mentioned have pros and cons to them, you may lose friends or family, you may lose your house, you may end up with a huge list of high-interest credit card loans you can’t pay back, etc.
They’re not the best way to get funding for your business, but maybe the only choice you have at this point.
Microloans are tiny loans and popular in less developed countries. As the name suggests they are micro, they can go anywhere from a few hundred dollars to a few thousand dollars.
As far as I know, microloans are not popular in North America because a few hundred dollars won’t get your business started and operational.
Have a look at the articles I have selected for more information on microloans.
The purpose of a grant from the government’s point of view is to boost certain industries. Offering grants is a great incentive to get people interested in starting or upgrading a business. If your business falls into that eligible categories, you can apply for a grant.
Have a look at the pages I’ve selected below that specialize in information about business grants. If you’re starting a business, it’s important to look at these options. You may need to tweak your business to qualify, but it’s worth looking into.