Ways To Get A Startup Business Loan
Sadly, if you are a startup, usually banks will not approve you loan for the business but there are ways that you can use in order to finance yourself. So what can you do? You can fund your startup with your account of retirement. It costs around $5,000 thousand dollars and then you pay $1,500 dollars each year. You can also use credit cards as they are one of biggest sources for business owner financing, and more then 65% businesses are using them frequently. It’s very popular approach but still you should research this and see if the option is right for you.
You can also ask your family or friends to help you with borrowing some money so you can finance business, it sounds little awkward but it doesn’t need to be like that. Try to sound professional just as you would if engaged with bank. Your friends and family know you and by asking them you could jump through hoops and access cash much quicker. But think about who you’re approaching because they need to be aware of the risks or rewards if it involves them too. Sometimes your idea doesn’t work the way you imagined so relationships can suffer. If you can’t rent money with this method, try taking the loan from peer to peer pages. There is site called Lending Club where you basically borrow money from total strangers. The only problem here is that you need a good credit for being qualified for P2P loaning. There are other choices like LoanMe. As they are approving loans which others would probably decline.
You can also fund your startup with the method of crowdfunding. It’s basically raising smaller cash amounts from lots of people. It’s usually done through pages like GoFund me or Kickstarter. There are different ways of using crowdfunding. Some of people are relying on the strength of their campaign or business while others are promising rewards in exchange when someone supports them. Try raising money from “angel investitors”. They are willing to give you some money for business but also hoping to get bi rate of return. They are usually wealthy and they like to invest in startups. Per one investment they can contribute between $25,000 to $100,000 thousand dollars.
There are many different options when it comes to loaning for business without getting it from the bank. What is most important is that you need to be sure by doing a good research so you don’t do anything that’s not legal or go above board. Before you even dig into any kind of business venture you need to see with your family and talk about what type of risks are upon you and what are you willing to put at stake so you can successfully launch new business. Once you start a business you will be tempted to put even more money in it so if you can, include financial advisor or accountant in the discussion.