Finding and obtaining small business funding can seem like a daunting task for you as a small business owner, especially if your business is a startup and you have no experience with it. It may seem like it’s almost impossible to get the small business funding you need in the current economy. The truth is lenders are still lending, you just need to know how to find them. There are 3 keys to finding and obtaining small business funding for your business:
- Knowing where to go and who to talk to – Let’s face it, you’re an expert at what you do but you might not be an expert in small business funding. Therefore, seeking an expert that knows and understands the in’s and out’s of small business funding industry may help you find the most appropriate lenders in the shortest time frame possible.
- Knowing and understanding the lenders criteria for approval – All lenders have certain criteria you have to meet to get approved. A major factor in getting approved is knowing what the lender expects of you before you approach them. Knowing and understanding their criteria for approval will enable you to prepare yourself. If you decide to work with an expert, they should know what criteria you’ll need to meet to get approved by any lender they refer you to. The best experts always know what lenders are looking for and can relay that information to you so you can work on becoming prepared to get approved.
- Knowing what type of financing is the most suitable for you – Depending on where you are in business (startup or existing business phase) you may qualify for different types of small business funding. Some small business funding options may or may not be suitable for you. The key is to figure out what type of funding is the most suitable for you based on your current situation. For example, if you are a startup small business owner with good credit, you could qualify for a small business credit card. If you’re a startup a business owner with less than perfect credit, you may be able to seek alternative options such as SBA microloans (SBA microloan lenders often service loans to entrepreneurs with bad credit). If you’re an existing business owner with revenues coming in, you could qualify for a variety of different options including small business credit cards, SBA loans, purchase order financing, equipment lease financing, merchant cash advances, or accounts receivables financing. Again, if you’re working with an expert, they should be able to help you determine what type of financing is the most suitable for you based on your current situation.
Overall the best way for you to find and obtain small business funding is to seek expert help. Going at it alone can prove to be a confusing and daunting task. Working with an expert who can help you figure out what type of small business funding is the most suitable for you and how to get approved for that funding will make the process of obtaining small business funding so much simpler.