Banks, credit unions, non-bank lenders, and governments offer small business loans. Businesses can choose from different options, including construction, commercial, and small business loans. There are different financing options, including angel investors, small business loans, equipment leasing and financing, and others. In some cases, applicants are asked to offer some asset as collateral.
Applicants can choose from unsecured and secured loans, and the latter feature lower interest rates. Grants and loans with different terms are offered under different programs.A good credit score is the main requirement for an unsecured loan. Governments offer loan guarantees, subsidies, contributions, and grants.Traditional lenders such as brick-and-mortar banks usually offer debt financing. The term and conditions vary depending on whether you apply for financing for business succession, expansion, or to start a business. A copy of a bill of sale may be required as well. You may need to submit your profit and loss statements and current balance sheets.
Other options are permanent, interim, and income-producing financing. Other options include working capital and commercial consolidation loans. List your assets, including real estate, vehicles, saving bonds, and term deposits.Businesses can use the funds to buy equipment, fixtures, furniture, and supplies. Financial institutions also look at your liabilities, including rent, loans, and business lines of credit. Give additional details such as loan amounts, assets offered as collateral, etc.
Funding is also available in the form of short-term loans with a borrowing limit of up to $35,000.
Bring your cash flow statements, corporate resolution, and proof of non-business income. You may want to include an analysis of the competition and a description of your customer base. Include information about your customers and employees, including administration, production, and customer relations.
Legal documents to submit include commercial leases, franchise agreements, and others. Specify whether you are a limited partnership, non-profit organization, or incorporation.Make sure you write a solid business plan to increase your chances of getting approved. New business owners can choose from bank and buyer financing. You may want to include sections on organizational structure, marketing, and product development as well as your marketing strategies.