Small Business Start Up Loan!
Now that you have decided to start a business, you may be thinking about a small business start up loan. Many small business owners find they need a little help getting started and began wondering where they can find extra money.
If you are thinking you may need a
small business start up loan,
here are a few things to consider before your proceed:
You first want to figure up had much money it will take to get your business up and running. Calculate the amount you will need to cover all your business expense for a about three or four months. This can allow enough time for your small business to began earning revenue.
Where's the Money?
It's important to know where the money will come from and what options you have. Ask yourself how much of your own money do you have available for your business. Look at savings, 401Ks, stocks and bonds, etc.
If your own resources are not enough to get your business up and running, your second option, may be to look at family or friends. Warning: If this is the case, proceed with caution because many times business, families and friends don’t mix.
After you have figured the amount of your own money and personal resources you have available, and should you find yourself still coming up short, you are now ready to begin looking at outside financing.
Show Me the Money
Tip 1: Get a Business Plan before you approach any outside lenders.
Many banks and lending institutes will want to see a business plan. A business plan shows them how you plan to run and operate your business. If you need help with this, visit your local
Small Business Administrate (SBA)
office and one of their trained staff can assist you. They offer a class called the 30 Minute Business Plan and remember their services are free.
Tip 2: SBA offers a variety of loan programs for small businesses, so don’t overlook them.
Many entrepreneurs find their needed small business start up loan through the SBA. The SBA can help you prepare your loan package and get it ready to submit to an approved SBA lender. The most basic eligibility requirement for the SBA loans is the ability for you to repay the loan from your business cash flow.
You may also seek financing with your local community banks and commercial lenders. You should start with the bank you currently do business with. Many times it’s easier to get a small business start up loan from a local bank because they may be more flexible and apt to make loans based on relationships.
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