5 Steps To Finding Government Loans For A Small Business Start-up
5 Steps To Finding Government Loans For A Small Business Start-up
Finding the resources to move your plans for a small business from an idea to a reality can be a tough challenge. With the small business statistics that say over half of all new small businesses will not be operating within a 5 year period, and we certainly don't want to fall into that category. Coming up with a plan for our business, including growth charts and projected sales, won't do any good unless we find a way to get the funds to be able to open the doors. The government wants small businesses to open their doors and employ people so our economy will continue to strengthen and is willing to loan money, or guarantee loans, but how do we find those government loans for small business start up that will give us the best chance to succeed?Here's a set of steps you'll want to take to find the loans you need:1. Do put together a business plan. Have a projection from the worst case scenario to the very best. This way, lenders will have a good idea how well your business could do.
2. Determine what kind of loan you need. Different types of businesses qualify for different loans and how the business is set up can affect what loans you'll be eligible for.
3. Make sure the amount of the loan you're looking for is enough. Not having enough capital for start-up is the worst mistake you could make and could potentially set yourself up for failure.
4. Make sure your credit scores are in good shape. And make sure that any and all partners have acceptable credit scores also.
5. Check out alternative financing options for equipment. Leasing your equipment may be a good idea if you want to keep the initial monthly payments low, creating a better initial cash flow that will allow you to pay off the leases at a later date. Incorporate those numbers into your business plan and see how the changes will affect the bottom line numbers. There are small business loans and even grants available for start-ups that can make the difference between building a successful business and not trying to get the loans at all. America needs small businesses to continue to grow and build the economy and the government wants to help all of them to get the financing they need to succeed.