Friday, November 21, 2014

Business Start-up Loans-- How do i get a loan to start a business

In this post, you can ref useful information about How do i get a loan to start a business such as business loan rates, small business loan, business loan calculator … If you need more assistant for How do i get a loan to start a business, please leave your comment at the end of this post.
Other useful material for you: free ebook: 12 tips for getting a small business loan

I. Contents of How do i get a loan to start a business

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Startup Loans are aimed at entrepreneurs living in the UK, looking for finance to start a business.The Startup Loans programme aims to boost the UK economy by supporting the development of over 30 000 new business with startups business loans over the course of the next few years – You could be one of them!
With investment of over £110 million to provide business startup loans to young entrepreneurs, this government backed initiative gives applicants a chance to combat high youth unemployment themselves, by making starting a business a viable alternative.
By taking part in the School for Startups Launcher programme you can access a business startup loan of up to £25,000 as well as FREE access to world class business teaching, a 24/7 online community and a mentor.

Are you eligible for a Business Start up Loan?

  • 18 and over?
  • Are you a British citizen or UK legal resident?
  • Do you wish to start or grow a business in the UK?

Why take out a Business Start up Loan?

Easy access to finance

Lets be realistic, we’re living through a time when it is particularly difficult to raise money for young business.
With startup loans increasingly difficult to come by via traditional methods such as banks, your next alternative is the 3 Fs (Friends, Family and Fools). If you hit a brick wall with the 3 Fs, you have two options remaining; Get investment & sell equity in your business or take out a business start up loan. Although investment is a viable option further down the line, selling equity in your business at an early stage will inevitably mean selling a relatively big percentage of your business for a fraction of your business’ potential value. Taking out a start up loan provides you with the money you need now and leaves you in full control your business.

Government-backed low-interest business loan.

At one of the lowest interest rates of its kind, these business start up loans offer a hard to come by opportunity to gain the money you need to kick start your business, with fair repayment options.

Non-secured loan

In the current climate, non-secured business start up loans are extremely rare to come by as banks are more stringent than ever about who they lend to, and why they lend at all. Start-up Loans gives you a chance to prove yourself and create your dream business without the usual risks associated with a secured loan. Visit our FAQ section for further information.

Added bonus of business support

In addition to a startup business loan, the School for Startups Launcher programme, will provide with dedicated training and mentoring at no cost. Find out more about the added support you are entitled to if you apply for a start up Loan through the School for Startups Launcher programme.

Credit Checks

Credit checks are now compulsory for all loan applicants and will be carried out by our finance provider, however if you have existing bad credit this will not necessarily impact the success of your application. We will ask you to complete a self declaration form and the information you provide will be compared with the credit check run by our finance provider. We cannot guarantee your loan but as long as the details from the credit check match those on your form we can proceed with your loan. We value honesty from our applicants when completing the Self-Declaration Form, though we do understand in some cases you might not be aware of your outstanding debt. If we have concerns over the level of debt you are in, or if your Self-Declaration form does not match your credit check, we will discuss this with you first before making a decision on your application.

Loan Repayments

To calculate the approximate repayments on your business start up loan, please download our Approximate Repayments Spreadsheet. You will need these numbers for the cash flow statement you need to submit with your start up loan application.

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II. Business loan videos

1. How to get small business loans from banks, private lenders and microloan lenders

2. Tips for Getting a Small Business Loan from Joaquin Gallardo of Wells Fargo

III. Business loan ppt

1. How to Get a Small Business Loan Fast!
2. How To Get a Business Loan with Bad Credit

Other topics related to Business loan

• Getting a business loan
• Business loan interest rates
• Small business loan rates
• Business loan rates
• Small business loan calculator
• How to get a small business loan
• How to get a business loan
• Business loan
• Small business loan
• Business loan calculator

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Thursday, November 20, 2014

How to Finance Your Start-up Business- How do i get a loan to start a business

In this post, you can ref useful information about How do i get a loan to start a business such as business loan rates, small business loan, business loan calculator … If you need more assistant for How do i get a loan to start a business, please leave your comment at the end of this post.
Other useful material for you: free ebook: 12 tips for getting a small business loan

I. Contents of How do i get a loan to start a business

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Making Your Dream a Reality: Finance Your Start-up With the Right Mix of Capital

If you’re planning on starting a business, chances are you’ll need some form of capital, which simply refers to the money that finances your business.
One reason for the failure of many small businesses is that they undercapitalize their business. Therefore, it is important that you know how much money you will actually need to start and to run your business until you reach your break-even point—the point when your sales revenue equals your total expenses.

Ask yourself:

  • How much money is required to start this business?
  • How much of your own money do you have for this business?
  • Do you already own any of the assets needed to start this business?
  • Do you have family, friends, acquaintances, or others who are willing and able to invest in this business?
  • Do you have a strong personal credit rating or lines of credit available?

Equity Investment

Equity means ownership. With equity investment, an investor makes money available for use in exchange for an ownership share in the business. If you use equity investment, be sure to consider how much ownership you’re willing to give up, and at what price. Once you sell 51 percent of your shares, you lose control of your company.
Equity investment includes any money from individuals, including yourself, or other companies in your business. This money may be from personal savings, inheritance, personal loans, friends or relatives, business partners, or stockholders. These funds are not secured on any of your business assets.
But, before going down this road, it is important to know the BC laws that apply to any company or other entity that raises money from investors. To find our more read our article: Seeking Equity Investment? Know the Rules

Personal Savings: The Most Common Form of Equity Investment

You’ll likely get most of your start-up funding from your personal savings, inheritances, friends, or family. In fact, according to Statistics Canada’s Survey of Financing of Small and Medium Enterprises 2007, 76% of small businesses in British Columbia financed their business with personal savings.
Aim to fund 25% to 50% of your business from your own pocket. This shows prospective lenders and investors that you are personally assuming some risk, and are committed to your business success. It’s also a requirement for many small business loans, which are usually secured (i.e. backed by assets).
Throughout the course of your business, try to keep a personal investment of at least 25% in your business to increase your equity position and leverage. The more equity your business has, the more attractive it makes you to banks that can loan you up to three times your equity.

Debt Financing

1. Government Funding

Typically, the most sought-after type of financing is government grants because it’s free money that you don't have to pay back. Unfortunately, a grant might not be an option for your business because not only are there very few grants available, most are geared towards specific industries or groups of people such as youth, women, or aboriginal owners.
The majority of government funding programs are typically loans, for which you'll be required to repay the principal amount plus interest.
In 2007, only 2% of businesses obtained some sort of government funding or assistance. You can find information about government funding programs for free:
Since the application process varies from program to program, you should contact the coordinator of the program that you’re interested in to find out what the specific application requirements and process are.

2. Commercial Loans

Commercial or personal loans from financial institutions account for the second most common form of financing at 44%.
  • Long-term loans. Use long-term loans for larger expenses or for fixed assets that you expect to use for more than one year, such as property, buildings, vehicles, machinery, and equipment. These loans are generally secured by new assets, other unencumbered physical business assets, and/or additional stakeholder funds or personal guarantees.
  • Short-term loans. Short-term loans are usually for a one-year term or less, and can include revolving lines of credit or credit cards. These are generally used to finance day-to-day expenses such as inventory, payroll, and unexpected or emergency items, and can be subject to a higher base interest rate.

Getting Your Loan Approved: What do Potential Lenders Look For?

Many lenders will look for the four “C’s of Lending” when evaluating a loan application:
  1. Cash flow. Your ability to repay the cash you are borrowing. This is measured using the cash flow forecast that you created for your business plan. 
  2. Collateral. The value of assets that you are willing to pledge for assurance that you will repay your loan. A dollar amount will be placed on these assets and that will be compared to the amount of the loan you requested. 
  3. Commitment. The amount of money that you're committing to your business. You can’t expect to obtain a loan without contributing a fair share yourself.
  4. Character. Your personal credit score and history with the financial institution. Your credit rating or score is calculated from your history of borrowing and repaying bank loans, credit cards, and personal lines of credit. Without a good credit rating, your loan prospects decrease significantly.
A lender might determine how much to lend you by evaluating your cash flow, collateral, and commitment. They will then subtract your existing debt to arrive at a final amount. Note that lenders look at the limit on your credit cards, not the amount you're currently using.
Typically, start-ups are not rich in assets so you may be required to secure your business loans with personal collateral such as your house or vehicle(s).
The difference between a private lender and a government program is the relative importance of these four C’s. A bank might place more importance on “collateral” and “commitment”, whereas a government program can often decrease the need for these by providing a government guarantee to the lender.

Make a Good Impression With Your Lenders

You can increase your chances of securing a loan by:
  • Having strong management and staff
  • Showing steady business growth potential
  • Showing reliable projected cash flow
  • Offering collateral
  • Having a strong personal credit rating
  • Always making your loan and interest payments on time, and never missing a payment
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II. Business loan videos

1. How to get small business loans from banks, private lenders and microloan lenders

2. Tips for Getting a Small Business Loan from Joaquin Gallardo of Wells Fargo

III. Business loan ppt

1. How to Get a Small Business Loan Fast!
2. How To Get a Business Loan with Bad Credit

Other topics related to Business loan

• Getting a business loan
• Business loan interest rates
• Small business loan rates
• Business loan rates
• Small business loan calculator
• How to get a small business loan
• How to get a business loan
• Business loan
• Small business loan
• Business loan calculator

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Wednesday, November 19, 2014

Start-Up Loans to Start a New Business- How do i get a loan to start a business

In this post, you can ref useful information about How do i get a loan to start a business such as business loan rates, small business loan, business loan calculator … If you need more assistant for How do i get a loan to start a business, please leave your comment at the end of this post.
Other useful material for you: free ebook: 12 tips for getting a small business loan

I. Contents of How do i get a loan to start a business

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Small business entrepreneurs often look at bank loans to start up a new business as they offer less risk than using their own money or having to sell off assets such as a home. As long as you have a solid business plan and a good reputation, you eventually will find a lending institution to provide you with start-up capital. If a private bank won't offer you money, alternative sources of financing exist.

Finding a Loan

You do not have to focus your search for a small business start-up loan only on banks. Several large companies are now in the business of lending. According to Mike Tracy of Business.com, General Electric lends about $10 billion each year to entrepreneurs. You might even forgo a loan entirely if you qualify for a small business grant from the Small Business Administration (SBA).

Applying for a Loan

To qualify for a start-up loan, the bank wants to know everything possible about your personal history and your potential business, the SBA explains. A typical loan application asks for basic information about your business, such as the structure of the company, why you need a loan instead of personal finances and how you plan to use your capital. In addition, you sould show an excellent credit score, business experience, collateral and any licenses required to run a business in your area to prove you are responsible.

Considerations

In general, banks are more cautious with their money--especially when dealing with new business owners--than private investors or investment firms because banks have to keep in mind that they are lending money that belongs to their account holders, notes D&B Small Business Solutions. In addition, banks are more likely to give out small loans (less than $200,000) than fund large ventures.

Credit Crisis

The 2008 credit crisis has made it more difficult for small businesses to get a start-up loan than in previous years, according to Lydia Dishman of Entrepreneur.com. In 2009, for example, the U.S. Small Business Administration reduced its lending to small businesses by 36 percent over the previous year. This means entrepreneurs must put more effort into laying out a profitable business plan and looking for funding to ensure they get start-up capital.

Tip

You can improve your chances at receiving a small business loan by increasing the stake you have in your new venture, according to the SBA. This means increasing the collateral you put up for the loan and decreasing your debt obligations.
Entrepreneur.com recommends that investors create an honest business plan. Investors are aware of the inflated numbers loan-seekers usually give them. Thus, you should give investors a sensible expected return rather than a far-fetched scenario for your future company.

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II. Business loan videos

1. How to get small business loans from banks, private lenders and microloan lenders

2. Tips for Getting a Small Business Loan from Joaquin Gallardo of Wells Fargo

III. Business loan ppt

1. How to Get a Small Business Loan Fast!
2. How To Get a Business Loan with Bad Credit

Other topics related to Business loan

• Getting a business loan
• Business loan interest rates
• Small business loan rates
• Business loan rates
• Small business loan calculator
• How to get a small business loan
• How to get a business loan
• Business loan
• Small business loan
• Business loan calculator

Posted by at 1 comment:
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