Entrepreneurs just getting into the business should have a list of goals in mind: Creating a business concept, developing a business plan, filing necessary paperwork and, of course, seeking financing. In the recent past this was not an easy goal to achieve for small business owners. The economy was poor and lenders were avoiding small business loans due to the risk they felt it invited.
The good news is the economy is improving and so are the prospects for small business owners looking to get a loan. Here are three ways new entrepreneurs can get the funding they so desperately need:
- Banks: George Cloutier, CEO of American Management Services, suggests that banks are still the first stop for small business owners looking for a loan. Banks tend to offer lower interests rates than other lenders and often have established reputations. Cloutier recommends that entrepreneurs make smaller loan requests than they need. While it won’t be all the financing they need, it does increase the chances of being approved.
- SBA loans: Another excellent way to get a bank loan is through a Small Business Administration, or SBA. These organizations can direct you to banks that are interested in lending to small businesses specifically. Growth Capital offers SBA 504 and Community Advantage loans for companies interested in long-term, low-interest financing.
- Online loans: The internet might not seem like the most trustworthy place to find a loan, but there are a number of reputable websites where alternative lenders, such as individuals and small companies, can be found. Interest rates for these loans tend to be higher than those available for bank and SBA loans.
For more information on how to get an SBA loan, contact the experts at Growth Capital today.