START UP Loans for Small Business
There are multiple loan types that can work for your startup business. Some businesses would do better with a business credit card, while others who can qualify would do great with an SBA loan, it all depends on your situation.One of the loan types business owners use for their startup isn’t technically a loan. Business credit cards can often be a great way to start your business, as long as you use them responsibly. The benefit lies in the fact that you have a set amount of credit, but you don’t necessarily have to use it all.Another valuable loan product you can use is term loans from your bank. These are personally guaranteed with collateral such as your house. While these do require you to guarantee it with your personal belongings, you do get a much lower interest rate.
Typically, you’re going to need to show your past experience in a related field, you’re going to want to have a credit score of 680 and above, and two years of personal tax returns.
What Types of Businesses Is It Good For?
As a startup business, there’s two ways to raise the capital you need. You can find an investor and sell equity in your business, or you can find a loan. The question is, do you want to sell the equity and decision making power in your business? While investors can bring experience and insight, along with funds to the table, they can also take a lot of the decision making away.If you want to maintain control of your company, small business loans
are the way to go.
What Are The Minimum Requirements?
Generally, any startup business can qualify as long as they have a credit score of 680 or higher and can show that they have experience in their business. Business credit cards are usually just based off credit score, while term and SBA loans take your tax returns and other items into account.