In the US, there are a variety of lenders (traditional and alternative) who offer some type of small business funding. If you are trying to get money for your start up or small business, it’s important to familiarize yourself with the different types of lenders. As you learn how to get a small business loan, you must begin the process ASAP. It’s going to take some time – especially if you have little to no credit, or even bad credit.
What are your options? Here is a list of lenders and organizations who have some type of funding options available for small businesses:
• Large commercial banks
• Direct online lenders
• Peer-to-peer sites (like Crowd Funding)
• Local community banks
• Bank lenders backed by SBA guarantees
• “Angel investors”
There are also small business lines of credit, equipment loans, and working capital loans to look into if you think they might be right for your needs.
The next step in learning how to get a small business loan is to get everything prepared and organized. One obvious place to start is with your credit report. If you have a poor credit rating, you’ll have to try to clean the negative items up and increase the score as quickly as possible.
If you have little to no credit history at all, your options will probably be limited, but this doesn’t mean it won’t be impossible to get some type of funding.
How to Get a Small Business Plan Using a Detailed Plan
You’ll need to develop a detailed plan on what you are going to do with the money – especially if you have a start up. Potential lenders will want transparency in how their money will be used and assurance that it will yield positive results so that you’ll be able to pay them back. Whether you need money for administrative expenses, inventory purchase, equipment funding, expansion, capital investments, etc., make it clear in your presentation.
Lenders like to see that you have a detailed plan. On top of that, they like to see that you aren’t doing everything by yourself. Show proof that you have been communicating with experts such as accountants and financial advisors, and that you have a full grasp of your financial situation.
Always be honest about your shortcomings, and explain what you plan to do to make up for them. Be sure to highlight any positives to improve your chances of getting approved.
To learn more about how to get a small business loan, look into US Business Funding services and products. They will not only help you get improved (they boast 95% approval rates), they will help you get flexible terms and payment options.