Lack of sufficient funds is one of the main reasons many people give up on starting their own business. It’s hard to get lenders to trust you with a business loan if your company is new and doesn’t yet have any business credit history. You might even be contemplating using your credit cards or savings to fund your business. However, before making any drastic decisions, here are some ideas on how to get a business loan for a new business.
You might or might not find what you’re looking for through the SBA. While there is some occasional financing for startups, you are more likely to find the success you need through other sources. Instead of a traditional loan, for instance, you might qualify for equipment financing, invoice financing, crowdfunding, or maybe even a business credit card.
Think about what you need the funding for when looking for options to get a business loan for a new business and alternatives. If it’s mostly equipment you need, then equipment financing is something to check out. If the customers pay your company through invoices, invoice financing is convenient (and speedy).
There is also a vendor program that offers flexible equipment leasing and financing for your customers. Comprehensive equipment leasing is available via vendor programs that can help shorten your sales cycle and provide you with an easier way to acquire the equipment you need.
Get a Business Loan for a New Business With Crowdfunding
Crowdfunding seems very popular these days, thanks to platforms like KickStarter, Patreon, Indiegogo, Lending Club, and CrowdFunder. These platforms offer anyone with a vision, including new business owners and entrepreneurs, who need to raise money for their venture a chance to share their idea and get some of the funding they need.
Suppose you’re still hoping to get a business loan for a new business and have no business credit history. In that case, you still might be able to qualify for a secured loan – be very, very careful with the collateral. Don’t put up collateral unless you are confident you will be able to pay the loan back. There will always be unexpected circumstances and emergencies.
Learn more about Vendor Programs, Equipment Leasing and Financing, and various types of loans at SuperMoney. In addition, there are plenty of helpful resources for small businesses. You will also be able to evaluate your options on how to get a business loan for a new business, such as through the SBA or relief funding (PPP).