How to get Small Business Loans

Websites and Information on Start up Funding for a New Business

Nov 4, 2009

Shop Around for Start up Funding, ULServices Online

Many people feel they would be more successful starting a small business themselves instead of relying on a job. Finding finance is often the first step.

Finding start up funding for a new business is not as difficult a hurdle as it may seem. Despite tougher economic times, there are several ways to go about finding the finance necessary to successfully launch a small business.

Small Business Loans

Many lenders will approve loans up to $30,000 based on personal credit. The lender concerned may still want to see a business plan and hold the small business owner concerned personally responsible for repayments. Having a good credit score and minimal debt will increase the chances of getting a small business loan approved.

SBA loans (US Small Business Administration) loans can be applied for in the form of a Microloan, Certified Development Company loan or a Basic loan Guaranty. In addition, the SBA offers excellent information and resources in order to help the small business owner succeed.

Borrowing from 401k is a good option if really cash-strapped, up to 50% of the assets in a solo 401K or $50,000, whichever is less. The entrepreneur concerned will be borrowing his or her own money and paying it back with interest, usually within five years. Another advantage is that there are no taxes or penalties imposed for borrowing in this way.

Financing a Small Business - Websites that can Help

Useful websites that can help new business owners find the funding they need are:

go4Funding.com which is a resource that can help hopeful entrepreneurs that need start up funding with investors who may be willing to provide the finance necessary.
iBank.com is a site dedicated to helping small business owners to obtain the funding they need to get started. It also provides additional help and resources for business plans, website design services, equipment leasing and so on.
gobignetwork.com pairs entrepreneurs with potential investors. A small business owner can post a funding request online. Lenders include venture capitalists, angel investors, banks and more.

Start up Funding - Finding a Financial Partner

Think of finding a financial partner by approaching family members, friends or work colleagues. Draw up a contract that all parties are satisfied with, detailing repayments, interest rates and/or whether the partner will get a percentage of the profits. A financial partner will be more likely to lend money if he or she sees that there is a business plan in place and that the business venture has a real chance of success.

Cash Advance

This is not really a loan to start up a business; it is rather for working capital requirements. Lenders offering a cash advance get their money from the credit card sales. This reduces the burden of paying back a loan and the terms and conditions in order to qualify for a cash advance are relatively straightforward and simple.

There is no shortage of places to find small business loans these days, and online searches for finance make it easier than ever to compare between lenders to find a tailor-made loan.

More Articles on Small Business Information for the Reader:

Ever wondered what budgeting software packages are available? How to Find Small Business Budgeting Software answers this question.

The article How to get Business Loans with Bad Credit examines how to go about getting a small business loan, even with a less-than-perfect credit history.

Small Business Debt Collection looks at how to go about choosing a reputable agency in recovering outstanding debts.

The copyright of the article How to get Small Business Loans in Business Loans is owned by Fleur Hupston. Permission to republish How to get Small Business Loans in print or online must be granted by the author in writing.