If you want to open a small business, you already know how much money it takes to get started. If you are having problems coming up with the funds, there are many things you can do to get money so you can get your business up and running. Two of these ways are listed below so you open your business.
Get a Small Business Administration Loan
A Small Business Administration (SBA) loan is a government loan that can help you. SBA is not a direct loan provider, so you have to start out the process at a local lender, such as your bank. Because the SBA backs the SBA lending bank, the bank may be more lenient in who they offer a loan to, such as for someone that has no credit or has a low credit score. For this reason, even if you have been turned down by a bank, you should still apply for an SBA loan.
Before you visit a lender, there are many things you will need to apply for this loan so the lender can complete your loan package. Once they have everything ready, they will submit all your documents to the SBA, who will then decide if you can have a loan.
Borrow Money Against Your Home
If you own your home, you can contact a bank to borrow against the property's equity. This loan is known as a home equity lines of credit or a home equity loan. There are two types of home equity loans: lines of credit and fixed rate.
A line of credit loan has a variable rate. When you apply for this loan, the lender will preapprove you and set a spending limit, such as $50,000.00. You can withdraw money from the account with special checks, or the bank may give you a card that works like a credit card. Your monthly payments will vary depending on what the current interest is.
If you choose a fixed rate loan, the lender will give you a single, lump-sum payment. Your payment and interest rate will not change over the time you have the loan. If you have not paid off your line of credit or fixed rate loan and you sell your home, you will have to pay the entire remaining balance before the sale can take place.
Talk with a lender to learn more information about these loans so you can decide what would work best for you.Share