Are you looking to secure a bank loan for your business? What seems like a painful and arduous process is exponentially easier with a bit of preparation. Just as with any big business decision, knowing your options can help you find the path of least resistance to your goals.
Here are some tips:
- Do Your Homework
- Explore Your Options – If you already have a personal relationship with a local banker, speak to them before approaching another bank.
- Small Business Administration Loans – These government-sponsored loans offer undeniable advantages for small business owners. Unlike financing offered by conventional banks, SBA loans only require a 10% down payment and offer repayment terms up to 25 years. You can use collateral to lower your interest rate and secure your debt, but make sure you understand the risk and potential loss of a second mortgage.
- Consider Viable Alternatives to Bank Loans
- Institutional Lenders
- Factor Lending
- Government Loans and Grants