Types of Small Business Start Up Loans
In today’s tough economy, new small business startup loans are becoming harder to come by. There are some federal loans, like the SBA (Small Business Administration), that provide loans based on credit worthiness, while other loans (not the SBA) are based solely on the entrepreneur’s potential income. There is also a program, called Technology Start-Up Loans, that provides money to start up a personal computer or business computers. Still, with the high unemployment rate, more people are failing to get their new business off the ground.
Luckily, there are new options for funding small business ventures that are now available. There are a variety of start up finance programs that are designed specifically for the new, small business owner. And since most of these programs require much less credit or collateral than traditional bank loans or credit cards, they are very attractive to even the least credit-qualified entrepreneur. Some of these new business startup loan programs are:
Entrepreneur Credit Union – Credit unions have been around for decades and were originally created to help new small business startup ventures get off the ground. Credit unions collect payments from their members on a regular basis, which can help new business owners meet expenses and payroll. This option isn’t strictly for new businesses, but is an excellent option for established businesses that need cash in a hurry. Plus, the credit union is more likely to lend money to members who are in good standing with the credit union. They will also look favorably upon a business that has proven it is able to repay its debt. This is a great option for startup entrepreneurs who are seeking help with large or long term expenses. If you want to know more about this you can click on the link Touch Wood UK.
Start Up Business Funding – This is a great option for those who are looking for startup loans and do not qualify for other programs. This type of funding allows business owners to raise the funds necessary to start or expand their business through a formal business plan. This often includes the details of the products or services to be offered. This type of financing often requires minimal documentation and is a quick means of obtaining funding for a business start up.
Seed Capital – Also referred to as Angel Investors, seed capital can be obtained through a number of sources. The most common sources are private individuals, but companies or organizations may seek capital from banks and other lending institutions as well. When obtaining seed capital, business owners must follow specific guidelines that are established by their seed investors.
These are just four of the most common forms of financing for new small business startup ventures. Every new business requires financing to get off the ground and is dependent upon finding the right type of financing. This process requires due diligence and careful research to obtain the best funding. Businesses that are seeking traditional loans may want to consult with an experienced loan officer. These experts have access to many different programs and can assist entrepreneurs in finding the best financing solution for their business ventures.