Becoming a business owner is a very exciting and bold step. The new business has many options. From the place of work to the staff there are many things that need to be weighed and considered. One of the most important of them is funding. While getting funding may seem like a difficult process, it’s important to understand what options you have to finance a small business.
Here are some of the most common financing options for small businesses:
Micro-credit: These small loans are for startups. They usually cost $35,000 or less. These loans may be easier to obtain than traditional bank loans, depending on your proximity to your local lender. Sometimes, before obtaining a loan, the applicant needs to undergo training and business planning.
Franchise Financing: If you open a franchise, you can get a starting loan from a general franchise company. Even if the franchising business alone does not help you financially, it can help you get a loan from a bank that already has a relationship with the business.
Development Financing: This form of financing provides your business with long-term fixed-rate financing for your most important fixed assets, including land and buildings. This is true for small businesses in developing communities.
Import and export loans: these are loans available to small businesses that have been doing business for at least a year and are struggling to obtain reasonable financing. In this program, lenders are advised to offer a loan to small businesses with a guarantee of payment of 90% of the loan amount (which may not exceed $1 million).
If you want to get any of the above loans and financing options for your business, it is important that you consider getting the support of an experienced lawyer.