Small Business Financing 1-2-3
In a struggling economy, it may not be as easy to get a loan with your local bank, especially if you have
bad credit. However, if you need financing to start your business or grow it bigger, there are lenders out
there willing to help you with funding.
When shopping for unsecured loans, look for programs that do not have pre-payment penalties or lots of fees.
The lower the interest rate, the better. Just like with traditional loans, applicants can improve the rate they
receive by checking their credit reports in advance to make sure there are no weak spots are repair what is
fixable.
Whether you need money to purchase equipment, pay down debt, fund new projects or something else, America
One is a great resource for small and home-based business loans and financing.
American One also offers multiple financing options (business loans up to $1+
million and as low as 7.93% apr) for small businesses and entrepreneurs. They make it easier
to obtain financing even in a
"finance-challenged" market. You can even apply online, get a loan quickly and easily and
have money in your hands before you know it.
Prosper Marketplace offers peer-to-peer loans at rates as low
as 7.4% APR. No hidden fees. No pre-payment penalties. (They were also listed in the Wall
Street Journal's Top 50 Venture-Funded Companies).
Small Business Credit Cards
Business credit is essential for any small business.
When you start your company, you want to establish credit and build your business credit scores, no matter how small. A business credit card is an easy
way to do this. Over time, you can grow your credit limit and rating. This will enable you to get
financing for your business down the road when you're ready to expand your operations or even at an
unexpected time of need.
Looking for a credit
card with a 0% introductory interest rate to finance your start-up? Citibank has a no-annual-fee card
called Citi Diamond Preferred. Get the
benefit of using "other people's money" without having to qualify for a bank loan.
Whichever credit card you decide to get, use it exclusively for business purposes. You want to keep personal
and business finances separate. If you can, accountants generally advise that you put your business credit card
under your business name so that you don't lower your personal credit score or complicate an audit.
Find a low interest rate credit card >> Low Rate Credit Card Finder
Small Business Grants
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Do you want to get a grant for your business? Grants can be hard to come by, and there are many "government
grant" scams out there. That said, there is money available.
Why Does the Government Offer Grants?
Small businesses help the economy thrive: they hire and pay workers, they pay taxes to the government and they
provide products and services to the community. It's in the government's interest to help small businesses get
started and be successful. However, government grant money is not widely advertised.
In addition, state and local groups offer grants, as well as non-profits and other organizations. There are
grants offered in certain industries or for special purposes. Sometimes a business grant may need to be
combined with other financing or funds matched. The task can become overwhelming without expert help.
New York Times Bestselling Author Matthew Lesko runs a website dedicated to helping people find available grant
money - especially entrepreneurs. He lists 10 Free Government Programs that are available to help small businesses increase their
sales.
Lesko also has posted over
150 videos on his site that visitors can watch for free. Videos cover all aspects of obtaining money and
grants from the government, including local business grants, help for struggling entrepreneurs, green
business grants, grants for non-profits, how to secure government contracts and more. He'll help
you find and apply for your own business grant through his Government Money Club.
The Grants for Small Business Owners has a grant proposal template sample you can
use, along with links to 50 state agencies offering grants, special funding opportunities,
instructions on how to fill out grant applications and more.
If you need to find a grant writer, Allied Grant Writers is a Better Business Bureau Accredited Company that offers business
grant writing, non profit grant writing and federal grant writing services. They also write mini grant
proposals and offer several other grant related services.
Microfinance and Micro Loans
Another opportunity for small businesses to obtain money is through a micro loan. Micro loans can provide
start-ups with needed capital, and they can also be used by existing businesses to grow operations. Micro loans
can sometimes provide solutions for entrepreneurs with poor credit, those without collateral and people who
don't have a stable income or are unemployed.
Microfinancing can be easier to obtain than the traditional bank loan and can be used for a variety of
purposes. However, borrowers may be required to go through business management training in order to qualify. If
your business provides employment for others and/or improves the quality of life for those in low-income areas,
you may also have a better chance of getting a micro loan.
The Small Business Administration (SBA) is a government organization that helps small
businesses unable to get loans through normal lending channels (including special interest loans,
micro-loans and secondary market programs). To find a non-profit lender in your area, go to www.microenterpriseworks.org.
If you are a start-up business, you can apply for unsecured start-up loans to
$150K online with America One Unsecured. Accion specializes in microfinance within the USA. A limited number of credit unions
offer small business loans. As long as you are a member, you can apply, but be well-prepared. Since credit
unions are owned by their members, they obviously want to minimize risk and carefully review loan
applicants.
Crowdsourced Funding
Crowdsourced funding is also a means of getting the money you need to start your business. Several websites
like ProFounder, PeerBacker and 33 Needs have platforms that connect entrepreneurs with investors so they can obtain the
financing that they might otherwise not be able to get.
Crowdsourced funding sites often provide fundraising assistance, including creating a pitch, terms of the
offer, managing fund collections, obtaining signatures and more.
More Tools to Obtain Financing:
Tip: Put together a business plan to
make it easier to get financing. Microsoft also has a free letter you can download from their website called
"Bank Loan Request for Small Business".
Small businesses that have been operating for at least two years can find capital through the Receivables Exchange, a global institute of international investors to whom small
business owners can sell their receivables in exchange for working capital to grow their companies.
