An initial loan, also known as an initial loan, refers to the financing of new companies with little or no history or working capital.
So, you are pursuing your dreams and you are starting a business, good for you!
But did you know that even first time business owners can qualify for a small business loan to help with start-up costs?
That is how:
In the absence of an income history, the most important factors that lenders will analyze are your personal credit score and the guarantees promised.
In some cases, collateral is integrated into the loan, as with equipment financing.
At other times, you may be asked to commit to real estate, vehicles or inventory to secure the loan and obtain a competitive interest rate.
Start-up funds are also available in the form of commercial credit cards, line-of-credit builders, SBA loans, non-profit microloans, personal loans for commercial use and more.
If the idea of a collateral makes you feel uncomfortable, you can still get the initial funds you need through commercial credit cards and credit line creators.
And let's not forget about the Small Business Administration …
Reserved for small business owners who have had credit problems in the past, loans through the SBA are usually small, less than $ 20,000, but they also have relatively low interest rates.
In addition, there are non-profit lenders that exist to stimulate economic growth and not make profits from their debt.
If you or your company is aligned with the non-profit mission, you may qualify for a micro-loan with a low APR, in addition to additional benefits such as free training and consulting programs.
A last option that most business owners do not know about:
Personal loans may also be available for commercial purposes, and are much easier to qualify than commercial loans.
Do not you look smart?
We created a free platform that allows you to prequalify for financing with a simple form and compare multiple commercial loans in parallel.
Now that's genius
Learn more about LendGenius and how we can help your business. –
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Video credits to LendGenius YouTube channel