There isn’t an iota of doubt that finance is the lifeline of every kind and type of business. Finance is required not just for initiating a business project but also for taking it to new heights. Finance being such an imperative element is one of the toughest to arrange for a businessman especially when the money is required for a start up project.
Undoubtedly, the idea of setting up a start up business might seem like the most attractive thing to a young and bright entrepreneur having wonderful business ideas in his mind but things aren’t that easy to manage as it appears from the outside. Banking and financial institutions usually hesitate to advance start up business loans as such loans expose them to high financial risks.
Banks and reputed financial institutions usually look for a good 2-3 years credit rating track record before advancing money to any businessman.
However, securing a good credit rating and that too at the initial stage of business is quite a task and securing the same won’t be possible for a number of businessmen. Is there a practical way of securing a start up business loan easily, well there surely is. Let us give you a quick insight of the same in the section below.
There is all likelihood that you might have researched for a number of years before settling for a particular business idea. If you’ve done so much research on your business idea then, how can you not do the same for your business finance? Yes, there are a number of banks that won’t really give up enough credit for your wonderful start up idea but today there are plenty of financial institutions-both online and offline that offer amazing credit and small business loan facilities to the budding entrepreneurs. So, before giving into any finance option, do your research and then approach the most ideal option.
•Work on your project report
Project report is basically a blueprint of the business that you are planning to initiate and in order to obtain quick and easy startup business loan, you need to make sure that your project report speaks great things about your vision and ambitions to your lender. Make an outline of your expected future cash inflows at least for the coming 5 years and be well prepared to explain your ideas and assumptions to your lender as and when he inquires you about it.
• Source of repayment
Most of the banks and credit agencies have an innate fear of lending money to new businessmen initiating start up projects because the percentage of non repayment of loan installments is quite high in such cases. As a borrower of money, you need to ensure your lender that you are not going to run away with his money and are very much capable of returning it back along with due interest and that too within stipulated time period. For ensuring the same, you need to make clear cut reference towards the source of your repayment to the bank/agency. The reliability of your repayment source would determine the ease of availability of start up business loan to you.
Where do i apply?
You can apply with your bank or use on of this private lender below:
KABBAGE.COM – #1 Online provider of small business loans. Kabbage puts the power of business growth back in your hands by giving you convenient access to working capital.
Enjoy ongoing access to your line, and take the funds you need day or night. Pay only for what you take and draw against your line as often as once a day.
Select the amount you need and they’ll deposit working capital directly into your bank or PayPal account. No waiting in line.
Requirements: 1+ year in business & $50K annual revenue.
Lines of credit from $2,000 to $100,000.
A+ Rating with the Better Business Bureau