Small Business Funding Options and Sources
There are 3 primary types of small business loans: bank loans, SBA loans and online loans. Each source has its advantages and disadvantages. The economic environment and banking / financing regulations can make it difficult for merchants and business owners to obtain small businesses loans. The more money one asks to borrow, the more difficult it is to find a solution. Companies with sound business strategies and financial history can still borrow money for working capital.
Find Federal Government Funding for Small Business
Find a small business loan through the Small Business Administration (SBA). The SBA reports directly to the President of the United States and can direct you to banks that offer loans guaranteed by this federal agency. You will have the advantage of approaching banks specifically interested in lending to small businesses. In the fourth quarter of 2009, banks made 14,386 loans guaranteed by the SBA. Interested businesses should contact the SBA office nearest to them, which can be found on the agencyÃ¢â‚¬â„¢s Web site Ã¢â‚¬â€œ sba.gov. Banks granting SBA loans are placing increased emphasis on business plans, cash flow and profit forecasts in deciding whether to lend. It is also dependent upon how well-funded the agency is. The SBA also can refer businesses to free counseling centers to improve their performance.
Find Small Business Start Up Funding
Finding funding or working capital for an established business with a positive track record is a fairly easy task. The problem with a start up business is that it does not have a track history. It does not have much collateral. It is considered a high risk business loan. Bank and SBA loans are probably not a viable option. Online unsecured small business loans, such as those offered by Business Expansion Express, might be an option and source for funding. Contact us to determine if this is the right option for you.