How to Find Small Business Loans and Grow Your Business
Big banks don’t give small businesses the love they deserve. Now, the internet has stepped in. Here are five small business loans to help reach your 2019 goals.
Traditionally, when you needed small business loans, there were only a few options. You could go to banks, investors, grants, or SBA loans.
These loans have usually been difficult to obtain. The approval rate at big banks was once as low as 8.9%. The approval rating has grown to almost 26%, but that leaves 75% of small businesses scrambling for ways to fund their business.
Technology has changed all of that. You can now get approved for a small business loan quickly and at competitive interest rates. Read on to find out what the top business loans for small business are.
- Kabbage
Does your business need to go from idea to proof of concept? Kabbage can help your business get the funds you need to make it happen.
Kabbage doesn’t offer small business loans, but revolving lines of credit. For many small businesses, this is a much better option because you just borrow what you need when you need it.
- Prosper
It’s very challenging to get a loan for a business that’s just starting up. Prosper give you personal loans that can be used for business purposes.
Since Prosper uses your personal credit for the loan, you are putting your personal credit scores at risk. If your business doesn’t take off and you can’t pay back the loan, you could damage your credit scores.
- OnDeck
If you need a lot of money (up to $500,000) and need it fast, OnDeck can help. You can get a large amount of money approved quickly and with minimal paperwork.
There is a price to pay for that kind of speed. You’ll pay higher interest rates. This is good for businesses that have been around for a while, need quick cash and can pay it back fast.
- Fundation
With Fundation, you can get short term loans and lines of credit. Working with Fundera requires that you have been in business for at least a year and have a few employees.
- The Lending Club
The Lending Club is a peer to peer lending network is good if you have an established business. Qualifications include being in business for 12 months and having at least $50,000 in sales.
Compare Small Business Loans
For example, you’ll want to compare OnDeck vs Kabbage, along with the other loans listed here. You’ll need to figure out a few things about your business and what your business needs are.
You’ll want to ask yourself the following questions:
- How much do you need?
- Do you want to hire employees to grow your business or invest in equipment?
- What is the expected result of the small business loan?
- When do you need the funds?
- Do you meet the minimum loan requirements?
Asking yourself these questions will help you determine which small business loans will work for you and your business.
Grow With Small Business Loans
As a business owner, you’re looking for every advantage you can to grow. Small business loans are a great way to leverage funds and turn them into growth. You can hire employees or invest in equipment.
Fortunately, you have many options besides stringent big banks to get a small business loan.
For more great business tips, check out these business articles.
