A potential entrepreneur with their sight set on starting a new small business is going to require several important things like: perseverance, hard work, and financial assistance like an emergency business loans. And not to seem impertinent, but if you have a great small business idea, the easiest part won’t be your financing and location. All that said, let’s touch base on the financial part of funding your personal “dream.” Here is a list of lenders who, with all things being equal, would have an interest in financing your new small business venture or refinancing your current business should you have expansion plans.
* Small Business Association (SBA). This government entity does not fund loans. They only guarantee your loan with an approved lender like banks and credit unions. The SBA is always on the lookout for a good idea and can be quite receptive to those just starting out in a small business. That’s the good news. The not-so-good news is that you will be smothered with paperwork in order to qualify. The best way to approach an SBA loan is to go online and get a list of available programs plus the paperwork needed in order to submit.
* Government Grants and State Grants. Federal, state and local governments offer a rather wide variety of financing programs. However, most programs target science and medical areas.
* Venture Capital Financial Assistance. This is a type of equity financing that addresses the funding needs of entrepreneurs and companies that can’t seek financing via the usual suspects: banks and credit unions.
* Bridge Loans. This is a unique financing outlet for business or an individual until permanent “takeout” financing can be completed. An example would be where you locate a building where you plan to start your business. You love the location but need some quick bridge loan financing to take the property off the market while you search for a permanent loan that will pay back the interim loan.
These loan types are often used for commercial business purchases and will generally have a higher interest rate, fees and other costs. If you plan to take this trip down “financial road” make sure you read and understand all the paper work; even consulting with a real estate attorney would be wise. If all your “beating the bushes” for a small business loan fails you might consider a private personal loan from a private lender. Private lenders are much easier to deal with and more flexible in repayment plans.