Whether you’re a start-up or a small business looking to expand, finding a loan can help bring success. Learn more about the best small business loans here.
You’re ready to dive in. You have a great idea. You’ve written up an awesome business plan. You’re so excited to embark on this new journey.
But there’s one thing missing. You don’t have enough capital to get started.
It’s an oft-repeated tale among entrepreneurs. Who knows how many entrepreneurs never even try to implement their business plan because of a lack of funds.
You don’t have to be one of them. A savvy entrepreneur like yourself can turn to the best small business loans for the capital you need. Let’s look at some tips on where to find them.
Banks are the more traditional places that you can search for a good small business loan. If you need a larger amount of money and want to enjoy a longer repayment term, this is the way to go.
The trouble with banks is that they tend to have strict requirements. It can be hard to qualify, and it may be several months before you see the money.
You can also try applying at a credit union. Not all credit unions will offer small business loans nor will you always qualify even if they do. But it doesn’t hurt to ask.
You’ll probably have to be a member, but most credit unions are easy to join. As non-profits, they tend to have less overhead and may offer a more competitive rate than the bank.
SBA Loan Programs
If you’re having trouble qualifying for a loan, you may want to look into an SBA program. The Small Business Administration is a government agency that offers guarantees to lenders if you default on the loan. With this guarantee, lenders can relax their requirements and more entrepreneurs will qualify.
However, there are more restrictions on what the money can be used for.
Another option is to look to online lenders. Some online lenders work by directly lending you their own capital. Others work through a peer-to-peer lending platform. Either can be a good choice when you need cash quickly.
To make your search easier, you can use an online tool that allows you to compare personal loans. This is a quick way to narrow down your best options.
The main plus to online lenders is the speed with which you can get a loan. The requirements tend to be a little less strict and you can often see money in your account within a week.
The big problem, though, is the interest rate. You’ll typically pay for this convenience with a higher APR. You may also get a shorter repayment period as well which can make those monthly payments more difficult to manage.
The Best Small Business Loans for You
Ultimately, what determines which will be the best small business loans are your particular circumstances. The amount of money you need, a repayment period you’re comfortable with, and an interest rate you can handle are all factors to consider.
To learn more about creative business funding, feel free to check out our blog. We’re constantly updating with fresh, new information that can help you get your business up and running.