Starting your own small business means you’ll be able to see your ideas through from inception to fruition. Your business plan is promising enough that you’re willing to invest your heart and soul to ensure its success. But heart and soul won’t be enough if you don’t have the money to get your new business running.
Welcome to the world of startup business loans, where small business dreams can become big business realities.
Most small businesses are launched with a combination of personal assets, loans from family and friends and startup business loans from banks or commercial lenders. The startup business loan is usually used to cover the actual expenses of running the business in its very earliest years.
Once the business is on solid ground – usually after the second year – many owners will take out a second loan, sometimes called a bridge loan, to pay for expansion, equipment upgrades or a better location.
Before applying for a startup business loan, you’ll need to make a clear-eyed assessment of your debts and assets. Determine as closely as you can how much money you’re going to need, and what assets you can bring to the table to show the lender you’re a committed and responsible borrower.
Most traditional lenders are leery of startup business loans, and will expect to see that you’re willing to put your house or any business-related real estate on the line. You have to ask yourself (and certainly anyone else whose name is on the deed) if you’ve got the stomach for that kind of risk And, even if your answer is “Yes,” be prepared to hear “No” from prospective lenders; on average, the first four applications for a small business start up loan are denied.
If those terms sound too risky, or you simply don’t have the assets traditional lenders require, you need to look into unsecured startup business loans. Brick and mortar banks that hesitate to lend secured startup funds are even more reluctant to sign off on a small business startup loan without collateral. Fortunately, there are lenders who specialize in arranging unsecured loans for borrowers with good credit.
America One Unsecured is a company of online unsecured loan consultants. If you have good credit, they’ll find the lender that best meets your credit profile and offers the best rates and terms. And, unlike traditional banks and lenders, because they’re an online business, they can provide faster service. America One Unsecured has relationships with many of the nation’s largest banks, and can secure the best rates and terms for you. Interest rates start at 7.93 percent, and terms range from 6 to 84 months. You can borrow as little as $10,000 or as much as $5 million. Or, if you prefer a line of credit without a payoff date, they can arrange that for you.
Starting your own company is tough enough. Getting the right small business startup loan can get you up and running sooner … and get you ready sooner for that expansion loan.