The vast majority of startup businesses require some funding to help them pay for all of their needs. Suppose you’re starting a new business yourself and need money. In that case, you’ll need to try and obtain a loan, get approved for a line of credit, or try your luck with alternative lenders. The best small business loans for startups vary since each startup has particular needs. Every owner has his or her own set of circumstances.
Many companies look for loans via the Small Business Administration. The SBA does not lend money directly; they partner with lenders and help setup guidelines. SBA-guaranteed loans typically have fees and rates that are fair and maybe even come with support to help business owners run their companies.
How much can you get from a loan by a lender partnered with the SBA? These loans range anywhere from $500 to $5.5 million to fund a business. There might be some programs that set restrictions on how borrowers can use the funds. Always check with an SBA-approved lender to determine the limits before you begin the application process.
Keep in mind that some of the best small business loans for startups have eligibility requirements. These requirements might include the repayment terms, your business purpose, a specific size, the characterization of the ownership, what your company does or plans to do to generate income, etc. Your business obviously must be for-profit and registered legally.
Best Small Business Loans for Startups With SBA
With many SBA loans, there might be a qualification that you already have some established business credit. Suppose this startup is your very first business, and you don’t yet have business credit. In that case, you might want to check with alternative lenders.
What is an alternative lender? These tend to be online-based private companies that operate somewhat like the lending arm of a bank. There is a broad range of financing products and services, including business lines of credit, term loans, equipment financing, invoice financing, and so forth. You should research and read reviews to find out the best alternative lending companies and which ones to avoid.
Where can you begin your search for the best small business loans for startups? US Business Funding is an excellent place to start. They have no restrictions on how you can use the money, offer flexibility for more cash should you need it, and have no “high credit requirements.” There are also equipment financing and vendor programs available.