Are you a small business owner hoping to spread your wings or are you planning on starting a business? If so this may be a crucial time for you as both the above situations will require Start Up Loans and Funding depending on the case.
One thing to keep in mind is that the first three years in business will determine if it will be successful or not. If you find that when this threshold is approaching that you need more funds due to growing work, then you are on the right track but how can one get the extra cash infusion that you need to expand your company.
Options for funding
When a company needs more money, there are a few options available. Firstly, the owners/partners can put in their personal cash into the enterprise if they are able to and if it is sufficient. However, if you run a limited liability company, you may consider taking out lines of credit from banks and other lending institutions. Mist people opt for this as it will keep the private assets of the company directors separate.
Taking a bank loan, however, is not an easy task, the banks will ask for tons of documents and collateral, and this could be very frustrating and time-consuming. There is one other option that is available to companies which are growing or are just starting their operations.
There are a few lending institutions which work differently to regular banks. They are people who like to assist start-up businesses and those that need extra capital to grow. These companies will evaluation your business plan and will often have your line of credit approved within ten days which is much faster than any bank would. You do not have to give them any collateral because they will want you to succeed and will grant you the money based on the merits of your business plan. You can get up to $ 150,000 from these companies, and they will even help you further if ever need more assistance.
Make sure you only go for companies that are registered to provide these services. Just because someone wishes to give you a loan does not mean they are licensed to do so and this can cause problems in the future for your company. Ensure everything is done correctly so that you can expand your business or start your dream business.