Many young and old people have great ideas of what they want to do. Some have even made much crafted business plans. They have their feasibility put in place and now are waiting for the funds, but these funds are not forthcoming. One thing you must know is that if you ever relent, your dreams will die. You simply could not get the loans because you have failed to sit down and learn how and from where you can obtain loans for your small businesses.
Before you move out in search of the small business loans, you have to be prepared. Apart from the sources from which you can access the funds, you have a very great role to play in getting these loans. This is because you have to convince them to offer you loans, and you don’t convince them without concrete evidence.
Sequel to this, you have to make the proper documentation. That is the number one point of getting small business loans. Work on your credit history and make it look good. If your business is one that does not have a record, it will be presumed that you will run it same way you run your credit. This will decide whether you will have the loan or not.
If your business has been there, you must present the financial statement to be considered before the loan is given to you. But if it is completely new, then you are expected to have a clear documented projection of what intends to be gain or the profit you will make in the future.
Good business plan
The next one that will nail it for you is a detailed business plan. This will have the complete feasibility of the business, your data and that of your partner(s), the strategies you will employ in beating the competition and making profits and the advantage you have in this regard. You might be interested to know how to make money online
With these done, you can now start the search. The first place to go obviously is the bank. If you want to obtain small business loans from a bank, you have to start looking at the banks you have been doing business with. If they have a history with you and are aware of your loan history, it will be easy for them to offer you small business loans, and they might even reduce the conditions for you.
If you have a mortgage with the bank, it is almost guaranteed that you will get the loan from them. But if they refuse, just get to the newspapers and TV ads, and you will see banks that are ready to do business. Get to them because they normally offer better services without many restrictions.
After the banks, you can now move to the credit unions. One good thing about credit unions is that they are not as large as the bank and therefore do not have very rigorous rules. Here, you can also obtain your small business loans by convincing any of the decision making personalities. They can easily persuade others to allow you take. Things here are done more humanely than officially, so it is very easy here.
Other sources of small business loans are the government loans. Many governments, especially the ones that are youth friendly, have a lot of loan programs meant to help small businesses grow. You can search for this online or through other media sources or even in the government website. These loans might involve rigors and consume time, but when you get them, they have very long term and low interest rates.
Family and friends
There are also loans from your family and friends. There are many of your friends and family members that are very happy that you are going into business. Most of the people who are wishing you well have some good money that can help. Just demand from them. Another good thing about getting this type of loan is that in most cases, interests are not involved. Here, you have to try and repay fast to avoid hurting the relationship.
Another way of obtaining small business loans is by the use of the home mortgages. Yes, if your home has a running mortgage, you can borrow money from this to finance your small business. But one thing you must know here is that caution is needed when using this method.
Another way is through your credit cards. If you have credit cards, be it business or personal, you can obtain small business loans with them. But this can be very expensive. It is normally used as a last resort, so you have to be careful here.
The next is through your retirement savings. Many of the administrators of these savings will offer you good loans from here, and you can use this to finance your small businesses. However, you should not borrow all the money for this, and you must be ready to face the risk if this does not work.
There are other non-traditional or non-conventional ways through which you can obtain loans. Some online sources now bring borrowers and lenders together. You can use this method to see if a lender will bid on your loan proposal. These methods will give you the desired small business loans.
Over to you now!
What method have you used to get your business loan in the past? What much interest rate did your loan attract, and how long did it take to pay back? Please share your experience with us by leaving your comment/contribution in the comment box below.
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