Not a day goes by that I don’t talk with an amazing entrepreneur with an amazing idea who needs money to fund their dream business. Most people out there in our business shy away from start-ups because quite frankly, they are very hard to fund. BUT, they are NOT impossible!
A startup business loan is any kind of financing aimed specifically towards startups with little to no business history. There are a variety of new business loans and financing methods available to new business owners:
- SBA microloans
- Business credit cards
- Private investors
As you might guess, many young and new businesses have a hard time qualifying for any kind of business loan.
So how new is too new?
For businesses younger than 6 months, it typically makes sense to pursue one of these small business startup loan options. Businesses older than 6 months (or businesses approaching one year) might have more traditional business loan options available to them, and should consider applying to those instead.
The most important factor in all of these small business startup financing options will be your personal credit score: The higher the score, the better your chances of qualifying for an SBA microloan, business credit card, or even a personal loan for business purposes.
Your eligibility for more alternative startup business loans like grants, crowdfunding, or private lenders will depend less on your credit score and more on the details of your business—like what your business model is, who your customers are, what industry you operate in, etc.
But the options do exist! Tired of feeling like you’ll never be able to fund your dream? Call us! We can help!