Option 1: Getting a small business loan
Many financial institutions offer loans for starting or running a small business. Be sure to shop around to compare interest rates, repayment terms and loan amounts.
When you apply for a loan, lenders may require you to show your business plan and a variety of financial documents. These could include bank statements and tax returns from the previous few years. If you’re starting a new business, your own finances and credit could be a factor in the lender’s decision.
SBA loans: A variety of lenders offer loans to small businesses. If you’re interested in a government-backed loan, you can check out the SBA’s website for some information on potential lenders.
Financial institutions: Your financial institution will likely have a variety of options to help you fund a business, including loans or business credit products. You’ll want to have a business plan, estimate of startup costs, and business projection completed to help a bank understand why offering you a loan is a good idea.
Alternative lenders: If funding from a bank isn’t available, you’ve still got options. You could explore crowdfunding, peer-to-peer lending, or look into micro-lending. Alternative lenders could also include friends or family that are interested in investing in your business.