Small Business Loans for Start Up Entrepreneurs

Small business loans start companies. The best time to look for a small business loan is when you are looking to your future needs, not urgently needing money. In order to avoid panic, plan out your start-up costs and include extra dollars for unforeseeable expenses.   

Loan Tips for Entrepreneurs

You are a risk to a lender.  The lower risk that you represent, the better deal you will get.  Your business plan must be strong in order to prove your worthiness. 

Be specific.  Lenders need to know exactly how and where each dollar will be spent, so be prepared to know specifics.

Lenders consider the industry that you are trying to break into.   If the industry is doing poorly, a good, convincing business plan may get you better rates.   

You can either get short term, intermediate term, or long term loans.  Short term loans last less than one year and are meant to pay for working capital.  Intermediate loans last from one to three years and are meant to buy new equipment or increase capital.  Long term loans are used to buy major equipment and establish basic assets.  

Different banks offer different interest rates and require different qualifications.  Use the internet to shop around for the best combination.  Some banks are hesitant to provide money for start up businesses, so be prepared to search.