Access to sufficient business financing is an essential part of starting and maintaining a successful business.
How do we determine what is sufficient and what is not? Unfortunately, there is no simple formula for calculating the exact amount of money a business will require.
The only proven strategy is to estimate known expenses. For example, the number of employees required and expected salaries, rent, insurance, and everything else, including hardware that you know is necessary for the day to day operations.
As a rule of thumb, I add 10% to this figure for the unknown and unforeseen expenses that may catch you by surprise. Once you’ve come up with a number, you either have the cash or need to get the cash somehow. If you have it, great; but what if you don’t?
Fortunately, there are financing programs for start-ups that you can apply for. Do your research and be prepared to go through the stringent small business loan approval process if you decide to proceed with an SBA loan.
If you’ve been in business for more than six months and need access to funds very quickly, alternative business loans are a great option. Business loans offered through getmoney.com can fund in as little as two working days and only require three months bank statements for approval.
Here are 4 easy steps you should take before accepting a loan
1. Think about why you need a business loan
Lenders will undoubtedly put this question before you. Do you need start-up capital, have business expenses that require immediate attention, or do you need the security cushion for the unexpected?
Is your business brand new, or have you been in business for a while? If you’ve been in business for a year and you need a sense of security, a business line of credit like the ones offered by Getmoney.com could be a great choice.
If you’ve been in business for more than six months and need immediate access to money for business expenses, business loans and working capital loans are a great choice.
Easy to qualify for business loans offered through GetMoney.com are quick and straightforward. It only takes a few minutes to complete the form, and the business loan can fund in as little as two working days.
Perfect credit is not required, and some borrowers may qualify with a fico score of 520. The only documents needed are three months of bank statements and a copy of your drivers’ license. Get started with a business loan
2. Decide on the type of a loan you need
The financing you apply for has to be in line with your purpose for seeking a business loan. For example, if you need the money for a one-time nonrecurring expense, a business loan is what you must consider.
If you intend to use the cash at some point in the future and plan on paying it back quickly, go for a business line of credit.
If you are starting a new business, you look into an SBA program. Make sure you have a professional business plan and all your documents ready to go before applying for an SBA loan.
If the SBA loan doesn’t work out, consider using a low-interest credit card to get you through the early stages of your business.
3. Look for a lender whose criteria’s you meet
A small business loan can be obtained from various places such as banks, private lenders, and online lenders.
Once you decide which lender you are most comfortable with, go ahead and take a look at their qualification criteria’s and apply with the one that suits you the best.
Banks are generally a good option if you have excellent credit, collateral, and time for a lengthy approval process.
If you don’t have perfect credit, current tax fillings, and all the other stuff traditional lenders are looking for, try an online lender.
They have more flexible guidelines at competitive rates. For example, you can request a loan up to $500,000 in just minutes on Getmoney.com. Their lending partners and lending network accepts borrowers with low fico scores, bankruptcies, NSF charges, and require minimal paperwork. Business loans are offered to businesses in 750+ industries.
4. Get organized and apply
Once you know what you want and what you qualify for, get all your documents organized and get started. Good Luck!