To get a small business loan or not to get one…That is a common question that many entrepreneurs have. When is the right time to go into debt to start your business? Is there ever a good time to go into debt?
I’m not a financial advisor, but I did want to share this article. I’ve been through the SBA loan process before only to come out without any funding. I’m okay with that now that I look back. It wasn’t a good feeling at the time, but I think it all worked out for my good.
I was young and really not as prepared as I thought. I had a great business plan that my father helped me put together. But long story short, I didn’t get approved.
So what do you need to know before you go get a small business loan? I ran across this article and thought it might be of interest to you as small business owner looking for capital to fund your new business idea.
Here’s what you will find in the article:
- What criteria the bank looks for
- The information the bank needs from you
- How to make the process easier
- How much is the typical small business loan
- Can you even get financing to start the business since most banks prefer to fund growth
- Are there any associations or other resources to help.
You might discover that you don’t need a small business loan yet. If that is the case, you should be thinking of creative ways to raise capital without going into debt.
There are other ways to get money to help start your small business. Take some time and brainstorm some other possibilities. It may be that you can start your business in phases and add on to it as you generate revenue.
I’m not a real proponent of debt, although there are times you can use other people’s money to get your idea up and running.
It goes into the details about each of the bullet points above. I hope you find this article helpful.
I have personally used SCORE for business advice and found them to be extremely helpful. So if I had to point you in an initial direction to get advice before you get a small business loan, that would be my suggestion.
Leave your comments and let me know how it works out.
To your massive success,