Sometimes here at Business Loans it is important to back up and go back to the basics in order to help our new readers. We appreciate every one of you and want to get to all your questions no matter how are along you are in running your business. We believe that how you finance your operation is one of the most important decisions.
There are so many ways to go about it that it can be confusing for anyone. Keep in mind that many of the options you hear about depend heavily on your credit and how established your business is in your market. Business Loans are only the start of how you financially manage your business but it is obviously the focus with regard to us.
Are Business Loans The Only Way To Get Money?
Most of current clients are here to seek start up capital, and even from this perspective there are many options for us to choose from. Most people start off by trying to get money from friends and family to finance their venture. This method comes with a unique set of challenges, namely, mixing business with your personal life. The deal may be good if you can get it, but what it is the ultimate cost if you are proposing a risky venture?
Start ups may have access to business programs where they receive support from the local community by way of mentoring, reduce office space, discount administrative help and/or grants. These to come with some sort of chain attached and although they may sound good, they rarely give a business owner the amount of aid they need and limit the owners power to spend money as they see fit.
The real solution for any serious business venture is some sort of external financing. Trying to become attractive to investors is something many potential owners see as a good use of their time but the process can be daunting. Creating business plans and making projections based on market conditions you may or may not understand can be just as hard as running the business itself. The biggest problem with investors is that they want an awful lot in return.
Unsecured Business Loans May Be The Key
The most common way for start ups to get funding is through business loans. Traditional business loans are available through banks and a variety of lending sources with the most popular being SBA loans. However, these are not that easy to secure.
In order to get an SBA business loan, a borrower needs to be well qualified and their business plan solid. This is what leads a lot of potential borrowers in today’s economy to think that they will not qualify. This may be true as far as traditional business loans go, but not so for other types of loans.
The best type of business loans for those with questionable credit or little business track record are definitely unsecured business loans. These are a way to finance your venture based on an owners personal credit history which alleviates the need for a business to show any sort of repayment history, sales projections or even market validity.
There are really no restrictions on how proceeds can be used and there is no answering to investors, regulators or partners. This type of funding may sound a little out of the ordinary but it gives a business owner the most freedom to spend how they see fit. Spending power like this provides the most flexibility to an owner who needs to borrow money or participate in a business loans program.