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Getting a business loan for a startup

    • 107 posts
    August 28, 2012 8:29 AM EDT

    If the idea is good, you should be able to get funding pretty easily.

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    • 50 posts
    May 10, 2013 9:16 AM EDT
    Startup capital is one of the most important components of a new business. In fact securing a small business loan for a new business is usually the most common way individuals go about starting their company up.

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    • 9 posts
    July 24, 2012 6:27 AM EDT

    Very informative post! I have read it with pleasure. Really thanks for sharing.

    Thanks and Regards

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    • 3 posts
    September 1, 2012 12:57 AM EDT

    Well, you can easily save lots of your money when you are taking loan for starting up business. The best way to save your money is that instead of buying commercial property, you should use an office space on lease.

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    • 49 posts
    May 29, 2013 1:23 AM EDT

     

    Thanks for sharing this informative post! I think start up business loans are so difficult. These days many kind of loans are available which will help us increasing the business easily.

     

    • 4 posts
    May 28, 2013 12:06 PM EDT

    If you have a good idea for your business the best is to find venture capitalist firm who will invest in your business.

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    • 344 posts
    February 7, 2012 9:04 PM EST

    If your company or company idea is at the pre-startup (seed), startup, early startup stage by all means avoid the excruciating frustration of attempting to seek a any kind of business loan from a conventional lender. I define a conventional lender as almost all banks and insurance companies. Every banker that emerges from Business School or the bank's own management training program into the role of a commercial lending officer is relentlessly brainwashed into never making loans to businesses that lack an acceptable credit history, a highly predictable and easily understandable cash flow model, and valuable and relatively liquid collateral. If your startup venture lacks any of the prerequisites listed above in terms of credit history, cash flow, and collateral forget about it. As you look into the thousand yard stare of the uncomprehending commercial lending officer you suddenly realize that you might as well be from Mars. Don't take my word for it; just ask Steven Jobs, the founder of Apple Computers, about his somewhat humorous attempts to get commercial loans while Apple was at the startup stage.

     

    It is important to understand the bank's perspective when looking at a startup venture. Banks are in the liquidity and risk management business. If a bank were to make a loan to startup business their best outcome is to receive principal and interest payments on time. If your business becomes another Federal Express or Apple Computer the bank doesn't make an additional dime. If the startup fails, as many startups do, the bank loses money. From a bank's perspective it is much less risky and much more profitable to make loans exclusively to established businesses and in the event of a business failure they recover most or all of their investment funds by attaching the collateral pledged by the business.

     

    For entrepreneurs at the startup stage creativity and aggressiveness are needed to solicit investment funds from more imaginative funding sources. Private investors looking for new products, the so called Angel Investors, are an important source to target. Certain types of formally chartered Venture Capital pools are also open to funding startups even at the seed stage. Many ultimately successful startup ventures began with "friends and family" funding. Some other successful startup ventures were funded using the personal lines of credit available to the entrepreneur. In all of these cases except the last one, however, the entrepreneur will have to give a piece of the business in the form of an equity stake in the business. Given the risks involved at the startup stage sharing equity in your new business is not unreasonable.
    As your business succeeds, your investors will succeed.

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    • 2 posts
    August 9, 2012 6:55 AM EDT

     

    I recently used a service where they don’t charge you an application fee, success fee or origination fee to help you get a loan for up to $50,000 and grants of up to $250,000 – in fact their services are 100% free and it has worked for my folks and could very well work for you: Loan & Grant Package. I was approved in no time and just followed the suggested requirements.

     Good luck



    • 4 posts
    September 2, 2012 7:43 PM EDT

    It is important to understand the bank's perspective when looking at a startup venture. Banks are in the liquidity and risk management business. If a bank were to make a loan to startup business their best outcome is to receive principal and interest payments on time.Replica Handbags And Shoes

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  • May 28, 2013 10:56 AM EDT

    Hey Jose,

     

    Another money lender with a gmail address. When are you guys gonna learn?

    • 3 posts
    September 11, 2012 12:14 AM EDT

    Very informative post! I have read it with pleasure. Really thanks for sharing.

     

    • 7 posts
    September 1, 2012 2:30 AM EDT

    If you have included the expenses of buying property to set up your business in the loan, then I would recommend you to instead of buying it why don't you use an office space on lease. Once your business starts getting more profits then you can easily buy commercial properties to expand your business.

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    • 5 posts
    October 8, 2012 1:42 PM EDT

    That is a great article your info should help a lot of people. Here is a site that will help also with business funding http://www.businesscreditamerica.com

    • 5 posts
    August 2, 2012 8:18 AM EDT

    The banks have been harder for small businesses to get loans after the "financial crisis" unless they have spotless credit or if they are overcollateralized.  The microfinance loans (www.prosper.com) or the many government economic development programs (www.businessloanfunds.com) are a big help in getting the funding.

    • 41 posts
    July 30, 2012 3:45 AM EDT

    A great alternative to a bank loan these days is a crowdfunded or microfinance loan.  I would check out Propser.com.  You may be able to get the money you need. 

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    I help entrepreneurs to start and run the small businesses they always dreamed of owning so they can fire their bosses and gain the freedom they deserve.

    • 44 posts
    July 23, 2012 8:58 PM EDT

    Thanks for sharing such a useful post, where as I concern this very useful post for person who really need funding to startup business.

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    • 13 posts
    October 14, 2012 12:52 AM EDT

     

    The beginning of a business is similar to a take-off of a plane. The pilot needs to have speed, balance and fuel. In the same manner beginning your business is the most crucial aspect. Obtaining credit is no longer easy. The marketplace of business and financial resource aids have changed over the years. Business owners, entrepreneurs and real estate investors have had to change their battle strategies. Through starting a business loan for your business, you will be helped. One of the first steps is to start a relationship with a loan officer at your local bank, credit union or nonprofit financial intermediary to access the programs. SBA has created loan programs which I believe will be a big support to the success of your business. .Research has said that as a small-business owner, you can get up to $750,000 from your local banks. This is very helpful for your working capital, asset purchases and leasehold improvements. It is mandatory that all the owners of a business who hold an ownership stake of 20 percent or more are required to personally guarantee the loan. Here comes the aspect of Eligibility: “How will one qualify for such?” The eligibility criteria for the loan program are the broadest of all the SBA loan programs, but they're still quite restrictive for start-ups and businesses related to financial services. In conclusion, all SBA programs are targeted at small companies. Small is defined as businesses with less than $7 million in tangible net worth and less than $2.5 million in net income). Typically most banks won't lend to start-up businesses that don't have two to three years' worth of financial statements and some owner's equity in the business. The Export Working Capital Program provides short-term working capital to small, export businesses, and the DELTA program provides both financial and technical assistance to help businesses dependent on defense installations transition to civilian markets. I hope that this will help you in your endeavor to create a business that will contribute to the global market.

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    • 13 posts
    February 15, 2012 4:47 AM EST

    Great info! Unfortunately, it's becoming more-and-more difficult for entrepreneurs to get the funding they need. And with the recent credit / mortgage crisis, banks are even more reluctant to provide funding for new startups.

    For many, it's just as hard to find Angel investors. And venture capitalists are more strict in funding new startups as well. For all these reasons, it's extremely important to have a detailed business plan! This way, you can earn the confidence of any potential investors.

    But for most, using personal savings or lines of credit are the only option. Banks aren't handing out credit cards like they did in the past, but they're often easier to obtain than loans. We can only hope that as the economy improves, things will loosen up...

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    • 9 posts
    August 31, 2012 1:42 AM EDT

     

    Finance is the lifeblood of a business. Without it business growth is not possible. Business loans are one possible source for business cash. It also has a variety of advantages as comparison to other forms of finance. In addition interest payments on business loan are tax deductible.

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    • 49 posts
    May 26, 2013 11:30 PM EDT

    Securing business loans now not easy these days. But the better Business plan helps you when you are going to business start-up funding.