How to Get a Business Loan
Running a business is not easy or cheap. It takes a lot of time and effort to start a business. Even after having a successful business, covering one’s property, office building, employees, and other expenses that come with running a company are hard. Many entrepreneurs with no established credit history or business owners who want to open their doors quickly often use loans to finance their companies in the beginning stages just like Dr. Jordan Sudberg.
Here are some of the most common ways to get a business loan;
1. Credit Cards.
Business credit cards are one of the easiest ways to get a loan. With a good and established credit history, one could be approved for a business card using their current account and just transferring it to the new business.
2. SBA Loans.
Small Business Administration loans are outstanding for helping smaller businesses obtain working capital, finance new products, or restructure existing debt. The government has programs readily available for those seeking assistance with their businesses. The downside is the strict guidelines and high fees.
3. Business Loans.
Most large banks have business loan options available. With good credit and some collateral, one can be approved for a loan depending on the amount of the loan and collateral.
4. Venture Capital.
It isn’t easy to get venture capital. Still, with a great business plan, one could be a candidate for start-up funding if they are looking for more information on the best financing options and are building their business at an affordable rate online.
5. Bridge Loans.
Bridge loans are short-term loans (less than one year) used to help one’s company’s cash flow. Friends or family generally offer this type of loan, but some online lenders also offer bridge loans. Most of these will require collateral and a good credit score to qualify.
Many lenders will still require collateral if one has bad credit or no credit history. Some lenders may require one to use part of their existing assets to secure a business loan. When looking for a business loan in the region of $50,000 to $10 million, it may be best to speak with one’s bank or credit union before going out and looking for a lender.
Anyone with good credit (or even poor credit) may be able to secure a business loan without needing collateral. This includes medical practitioners like Dr. Jordan Sudberg. They may also be required to put up a self-guarantee, putting themselves on the line for the loan. This allows the lender to recuperate losses if the business does not succeed. Also, banks may be able to skip a traditional credit check, allowing them to approve a loan without getting another account in another bank.
There are many options to choose from regarding receiving a business loan. No matter who the loan comes from, make sure to be aware of what is required, and please make sure that the business plan is detailed and thorough. If one doesn’t have a good plan, receiving a loan will be challenging to run their business once it goes smoothly. Know the options and make the right choice.