Startups have the most difficult time acquiring online loans and the reason is simple: no credit is worse than bad credit. Startup entrepreneurs are an unproven entity, and banks and online lenders simply have no history to base their decisions on. Fast and Easy Funds understands that loans for startups are difficult to acquire, so we have outlined some of the best ways for a startup to receive a small business loan.
SBA Startup Loans
The Small Business Administration offers loans for startups with competitive interest rates between 7 and 9%. However, be warned that they are not easily received and they will require a decent personal credit score, and usually some form of collateral (usually real estate). You can find the SBA startup loans here.
You aren’t just limited to loans for startups, why not try applying for a grant? There are grants available for women, minorities, veterans and so on. Search for grants and competition in your area or field. You’ll be surprise how many small business loans start from simply winning a competition.
When Does Start Up Classification End?
The truth is, no one is sure, and each online business lender has different metrics to define a startup. The truth is that no one can really agree, so it’s up to you to call find an online business lender that agrees you are still in the startup phase.
If you have tried all the above methods to secure small business loans for startups, but you have had no luck, then it’s time to consider the alternatives:
- Online Crowdfunding
- Credit Cards
- Family Member Assistance
- Consider an Investing Partner
Do whatever you can to get your startup off the ground and on the path of success.