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