When your small business is in need of cash, you have a few options. You can use savings or go apply for a bank loan. While banks are often the most familiar with small business loans, they aren’t always easy to get approved for. Here are some ways small businesses have successfully found small business loans.
Note: If you are looking for an SBA small business development fund, visit our guide on how to get your small business an SBA small business loan.
1. Contact Your Bank
Banks are extremely familiar with small business loans, so if you already have a bank account set up you can simply go in and ask about small business loans. However, be aware that most banks will want proof of income before they give you a small business loan provider. This might include financial statements or even tax returns. If the amount you need is substantial (i.e., $100k+) then it’s probably easier to apply directly through the bank itself, but for smaller amounts this is still an option.
2. Get Co-Signer for a Loan
If your small business has been up and running for quite some time, you might already have a credit history. You can go to a bank and ask them if they would be willing to co-sign with you on the loan. This means any default payments will show up on both of your credit reports and will affect both of your scores. However, small businesses with no credit history or small amounts of income might still be able to get small business loans this way because small banks also offer small business loans.
3. Ask an Accountant (or Friend)
Do you know someone who’s employed at a large company or works in finance? Ask them if they know about any small business loan programs. Many small business owners need small business development fund, so your accountant or friend might know of small business loan programs at local banks or small business lenders.
4. Go to Your State’s Economic Department
Many small businesses are eligible for small business assistance from their state governments. Call the department in charge of economic development and ask if they have any small business loan opportunities. These government organizations can either offer you small business grants (which is money that doesn’t need to be repaid) or they may give you a small business loan with competitive rates, depending on what kind of service you need. Keep in mind though that these loans do come with interest fees, so make sure to also check with your local bank to see what small business loan interest rates they charge.
5. Fundraising Sites
If you need small amounts of money (less than $25k), then it might be easier to get small business loans through fundraising sites like AMP Consultant. This is especially true if your small business hasn’t been around for very long and has no track record, credit history or revenue stream to show what its future looks like. Some small business owners have successfully used crowdfunding to find small business grants, small business loans and even other types of small business financial assistance.
6. Small Business Loans from Resources
There is small business loan provider available from small business organizations and small business financing companies online. These small business lenders might not have the most competitive rates, but they will give you a small business loan pretty quickly because it’s an easy way to get money without going through a lot of hassle. Most small businesses need access to credit in order to grow, so if you need fast cash this is a great option.
7. Small Business Assistance Programs
Unbeknownst to many small business owners is the fact that their local government agencies do more than process taxes and print licenses; some even offer small business assistance programs or small business grants. Small who aren’t aware of small business opportunity funding programs are missing out on important small business financial opportunities.
8. Small Business Loans from Private Lenders
There are small businesses loans available from small lenders online, both banks and small business financing companies. Some of these lenders offer small business opportunity fund with affordable rates and quick turnaround time, especially if you have a good personal credit score and a decent amount of income to back it up. The key is finding the right small business lender for your situation and then working with them to secure the best small business loan possible. You can also consider using peer to peer lending or small business funding crowdsourcing when looking for small business financing sources.