How To Get Start Up Business Finance
Starting a business is stressful and risky, yet exciting and potentially fruitful. The downsides aren’t helped by worries about how you’ll fund your fledgeling business, which is perhaps why you are reading this.
Despite what you may think, or have been told; it is possible to get business finance for a new business. Whilst it isn’t as easy as getting finance for a decade old, rapidly growing business, you’ve likely been mislead about how hard it actually is.
This had lead to a growing number of business owners are reaching into their own pockets, or even getting personal loans to fund their business. But using personal finance isn’t the only way – let me explain.
Lenders Typically Look At 3 Areas For Start Up Business Loans:
Your business plan – is it credible and possible? What’s the likelihood of it succeeding? If your business fails, the lender loses lent money, so this is important.
Your personal credibility – Do you have experience in the industry? What credentials give you credibility?
Your personal credit rating – With no business accounts to look at, lenders often want to see that you know how to manage money. They can do this with your personal credit rating.
Alternative Funding For New Businesses
Of course, business funding isn’t your only option. Start up grants can be an attractive option, but aren’t guaranteed and can take months to come to a decision.
As mentioned before, personal finance is being used increasingly often to fund new businesses. However, you will be personally liable as with any personal loan – it could even be secured on your car or house. This can add up to an astronomical amount of pressure for a new business owner.
If you want to be left to grow your new business and make decisions, a start up business loan is typically your best option. You can take advantage of attractive rates and flexible terms, whilst using your funds to supercharge your business.
Good luck with your new venture! And remember, we are here if you have any questions about startup finance.