It can be very hard to break into a new market place because of the cost of entry. This sets up a huge barrier for many people to try and break down. Sometimes the approval process and documentation needed to obtain a business loan from a bank can seem endless.
There are other solutions however. There are a lot of companies online that will provide a quick business loan to those that qualify. The internet makes everything easier doesn’t it?
Unlike banks, many of these companies do not require that you have stellar credit, which is great for people that have below a 700 FICO Credit Score. The ability to obtain a business loan has never been easier. Minimal documentation is usually required and the approval process only takes a few days.
The money can be deposited into your account as fast as 72 hours from approval! In many cases these loans are unsecured business loans, meaning no collateral is necessary to receive the loan. Of course terms and conditions apply, so read carefully.
Small Business Loans for Women
In decades past women often had trouble borrowing money to start a business. When the bank analyzes a typical loan they tend to look at the assets and incomes of the borrower. Well, for many decades women did not own much of anything and didn’t really have an income. This is why there are small business loans for women specifically. The loan originators for women look primarily at the business plan being presented rather than what they already have.
Some of these loans can be in excess of $300,000, which is a substantial amount of money for any new business. The originators look at the strength of the business plan, the women’s credit history and their experience. The paperwork required is just as thorough as a standard business loan, but they look at different things.
Not only are there a variety of loan opportunities specifically for women, but they can also obtain grants from the government. Home-based business loans have become increasing popular, as they provide a stay-at-home mom the opportunity to make some money while at home taking care of their children.
Business Acquisition Loan
So, you found a business that you would like to purchase, but what do you do? Getting a business acquisition loan can sometimes be very challenging. The reason being is if the company you want to acquire is a very good company, then you’ll need a pretty significant loan amount and if the company you wish to acquire is not very good, lenders can be hard to find.
When seeking a business acquisition loan the lender will be looking for certain things:
• Net Worth – The bank wants to see how much you’re worth so they can get back the money on the loan if the business fails.
• Market Risk – The lender will determine how likely it is that the business will fail or succeed.
• Transition Risk – Will the borrower be able to run the company as well or better than the previous owner? A lot of times your ability to get a business loan actually depends on your personality, accomplishments and experience.