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We understand that your business is unique and you don’t necessarily have the
exact financing needs that other companies face. We have a wide variety of lenders
who can provide you with the funding that you need. Here’s some basic information
on the various small business funding options that may fit your needs.
Loans for Startup Companies—Up to $250,000
SBA Loans
The Small Business Administration offers several small business loan programs based on your intended
use of funds. The Basic 7(a) Loan is the most flexible and primary loan program
offered. It allows qualified small businesses to obtain funding for anything from
machinery and real estate to working capital and limited debt financing. The Microloan
7(m) program provides up to $35,000 but excludes funding for real estate and paying
existing debts. These loans are executed through an intermediary, so they are not
guaranteed by the SBA.
Note: SBA Loans can also be obtained for amounts exceeding $250K
Unsecured Personal Loans
An unsecured personal loan can provide small amounts of financing without requiring
collateral like real estate or machinery. In some cases, you may not even need to
have your credit checked.
Loans for more Established Companies—taking it to the next level $250,000 up to
$2 Million +
Business Loans
The business loan is primarily for business expansion and development. More specifically,
this might include funding for working capital, the purchase of supplies, inventory,
etc. In addition to your credit rating and ability to repay the loan, the purpose
of your loan will determine the amount of money you can borrow.
Note: SBA Business Loans can be obtained for larger loan amounts as well
Commercial Mortgage Loans
Investors and small business owners use commercial mortgage loans to purchase investment
properties, to expand their businesses, to purchase new equipment, and to pay off old debts.
These commercial loans tend to be for amounts of $100,000 and greater. Many flexible
financing options are available, including cash-out refinancing, second mortgages, and even
stated income programs for applicants who do not wish to share their tax documents and other
financial reports. A commercial mortgage specialist will work with you to find the best loan
option for your unique needs, and to ensure you supply the proper paperwork before and
during the underwriting stage so your loan closes as quickly as possible.
Early Stage Investors
All of the previous options were forms of debt financing. In other
words, the cost of getting funding is the interest you pay on your debt. Most early
stage investors, on the other hand, provide equity funding. Instead
of paying them interest, you will be selling them part of your company.
Family and Friends
The first $50,000 can be the hardest amount of funding to raise because the business
is still in the idea stage. Many times family or friends are the only people willing
to take that large a risk. Beware however: a business gone wrong can ruin the best
of relationships.
Angel Investors
These investors provide anywhere from $20,000 to $500,000 or more to startup businesses
that typically already have some track record. They usually will perform significant
due diligence, so the process of getting angel funding can take six months or more.
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