Starting a new business is an exciting experience. There are some steps you have to take, especially with your startup financing, to ensure you are able to setup and move forward with your business. The challenge you may face is acquiring enough funds for your business.
Today, there are many alternative financial institutions offering small business startup financing. They offer up to $300,000 that will enable you to effectively invest in your business. The small business startup financing is easy to apply to these institutions as there are less requirements compared to bigger financial institutions. Furthermore, bigger financial institutions take weeks to decide if you qualify for financing.
When you are searching for a financial option to support your business growth, look for an institution that makes it easy to apply for the loan. There are institutions that are not looking at your credit history or your assets. They base your application on your financial strength of your business. Now you do not have to worry about acquiring a financial loan because there are plenty of small business startup financing options available. Choose a lender that best suits your needs and financial capabilities.
Here are a few small business startup financing tips to help with your capital ventures:
1. Small financial institution
There are numerous financial options available for small business financing. Therefore, if you have been refused a bank loan, do not despair as you still have options. Smaller financial institution can offer $100,000 to $300,000 funds for your business.
2. Simple application process
The application process for startup financing is simple. It takes only 10 minutes for small businesses to complete. You just have to apply online and attach all your documents. No more appointments or filling out numerous forms.
In about 24 hours you can be approved and soon after receive the funds you need to take your business to the next level. An advantage is that you only have to submit a few documents such as a government issued ID and a void cheque.
3. No collateral needed
Collateral is a guarantee for most financial lenders. They are not comfortable offering an unsecured business loan. Lucky for you, there are small financial institutions who are not looking for collateral. They are focused more on your financial strength of your business or your ability to repay.
Cash flow is what will matter to them. They base it on your financial statements, especially your weekly or monthly sales. Your home, car and other assets are all safe and belong to you.
4. No credit history check
It is a relief to know that the lender is not looking at your credit history. You might not have a good record and may be concerned that you will not qualify. Do not be afraid to look for a lender despite your credit history.
After all, lenders are offering funds based on your financial statements and not on your credit history. This works in your favor if you are approved. You can immediately improve your credit history by paying back the loan to this small financial lender.
The benefit at the end is that you improve your credit history record overtime as well as receive sufficient funds to invest in your business.
5. Easy payment plan
Loan payments that fit your financial capacity is rare to find. You will be surprised to know that there are financial lenders that want to make it easy for you. You can opt for a fixed or flexible plan that will make your payments comfortable and stress-free.
With the fixed financing, you can choose to repay in 6, 9 or 12 months. If you consider the flexible option, repayment is based on your sales with no fixed term.
6. Quick approval
It is hard to associate a fast approval process with a financial loan. There are very few financial institutions that make it easy to be quickly approved. You will be surprised to know that there are lenders who can approve your application within a day.
Always look for financial lenders who offer a fast approval so that you are not waiting long for the funds.
7. Capacity to repay
All small lenders just want to see if you can repay them back. If you maintain compelling financial statements and a decent cash flow, it will assure the lender that you can repay your loan.
Take time to get your financial statements in order and prove to the institutions that you can pay back the loan amount you requested.
8. Purpose for the investment
How you invest the funds will interest the lender. Make sure to be clear on how you will use the funds to grow your business. It is even better to give them a breakdown so that they understand your logic for the financing.
Most lenders approve financing for business related growth that includes renovations, inventory, expansion, equipment, marketing and advertising.