How to Find Business Startup Loans
- 1). Approach friends and family about a personal loan.
Friends and family who are looking to invest can be the perfect place to find small business loans. This option is good if your credit is less than perfect or inadequately established. If you pursue this kind of business loan, put a strong contract into place so that personal and professional boundaries are never blurry for you and your family. - 2). Apply for conventional bank loans.
A business loan from a bank will require a well constructed business plan. Before you apply for this kind of funding, make sure and shop around for low interest rates. - 3). Apply for small business grants.
There are innumerable small business grants available to potential entrepreneurs. Apply to these funding sources on multiple levels; federal business grants, local, and state as well. - 4). Search for a community loan.
A community business loan works like this; a group of people who are looking to invest pool a sum of cash that they are willing to loan out to business startup funding. The loan is not unlike a conventional bank loan in that you still must have a strong business plan in place, and there will be either interest to pay or a portion of your business profits, but the community business loan can be a foot in the door to getting the cash you need to get started. These small business loans can be found online, or even in news paper ads; just make sure that the group you work with is legitimate.
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