Thursday, 10 December 2015


Small business loans are a great option if you are looking to expand your small business and cannot otherwise obtain traditional financing to grow your business.Typically, when small businesses apply for small business loans, they are really applying for a commercial loan that meets SBA requirements and comes with an SBA guaranty. If business owners are eligible to other financing resources with feasible terms, they would not be eligible for small business loans. 

Anthony Pili, vice president and director of strategic planning states that small business loans are a good option for small businesses if they did not qualify for a bank loan, yet have a specific use for the funds that will help grow their business. Some specific uses would be new machinery, orders are outpacing supply, an additional truck or location to help meet profitability or extra employees. 

Additional good uses for small business loans would be refinancing high rate debt, buying the building in which the business operates or buying out a competitor’s business.A bad example for taking small business loans would be acting on a hunch. For example, taking out a loan for advertisement in a newspaper or billboard and think that customers will simply come. 

That is usually not the case.The SBA offers many different loan programs to help small business grow and succeed. The different programs range from guaranteeing a bond, helping business owners find capital to providing assistance to expedite a loan involving a third party lender. It is recommended that prior to applying for any type of small business loans assess your needs and financial health of the business.

 Consider the strength of your industry, the strength of your team and how you will put the loan to use and how you are going to pay it back.To answer these questions, make a business plan. Lenders will appreciate a well thought out plan prior to their approval.Although a typical business loan has lower fees, is easier and faster to obtain, small business loans offer many important advantages such as getting a loan in the first place at specific stages of your business’s development.

For further information please contact :    (855) 576-5888

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