Small Business Loans, Why are they a BIG necessity?

                                                    

Small Business Loans, Why are they a BIG necessity?

Whether you are planning on starting a new business or expanding your existing one, a business loan will always be helpful. Your expenses could go anywhere from buying new tools and machinery to outperform your competitors or making adverts to promote your business in the market - Small Business Loans are sure to come in handy.

How To Get A Small Business Loan with Bad Credit?

                                                

There are many different ways to get a business loan, and it depends on your lender which business loan you can get avail. 

Offline

You can apply for a business loan offline by visiting your nearby bank. Documents such as valid ID proof, Citizenship proof, income proof, etc are required.

Online

You can apply for a business loan online on your lender’s website. Scanned copies of the required documents should be submitted. 

Call/email 

You can call your lender’s relationship manager and apply for a business loan (You might be asked to visit the bank later). The application can also be sent via email along with copies of your documents.

Can I get a Business Loan if I Have a Bad Credit Score?

You are required to have a credit score of at least 600 to get a business loan. However, small loans for bad credits are still available. 

Bad Credit Business Loans

There are many other options for you to get small business loans, even if you have a bad credit score. 

Micro-lenders 

Small non-profit organizations started to help low-income businesses secure small business loans.

Business Credit Cards 

These will help you establish a strong credit history for the future.

Merchant Cash Advance 

It is rather expensive but often one of the few options available for people with bad credit to get business loans. 

What is a Startup Business Loan?

Startup Business Loan is for when you require a loan to start your own venture. There are two types of Startup Business Loans.

Line of Credit

It is a short term working capital loan, mostly used to play the employee salaries or other small day-to-day expenses. This business loan is initially interest-free and usually requires no collateral.

Equipment Financial Loan (EFL) 

It is a long-term loan, mostly used for growth or fund expansion of your business. You can get avail of this startup business loan against your business as collateral.

Pros of Startup Business Loan

A startup business loan can give your new business the financial boost it requires. 

With little or no rate of interest, with Line of Credit Loans, you can easily manage your initial business stages with the funds.

You get the opportunity of building your business credit.

Cons of Startup Business Loan

It is often hard to qualify for a Startup Business Loan, and you might not even get the loan.

You would have to keep your business as collateral.

Bottomline

As exciting as it sounds, getting a business loan has its consequences. Many factors need to be taken into consideration before you opt for a business loan - be it a small business loan or a big one. Thorough research and analysis is a must before jumping to a conclusion.