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Small Business Startup Loans Can Get Your Business Up And Running
A small business start up loan amount will vary based on the lender and your risk to them. Some lenders only offer small amounts like $15,000 where others will grant you a higher amount. You should start looking for the loan options by checking with the Small Business Administration. They have a number of loans you can choose from and they can help you find additional lenders that can approve you for the loan if you don't meet their terms. Typically the loan will have a favorable interest rate. If you default the lender will use the collateral to pay off the loan. Since most owners of small businesses do not have anything established, the collateral they often use is their home. Be very careful when using your home as collateral as you can lose everything if the lender calls in your loan! Try to keep your personal credit and assets away from the business as much as possible. This is the best thing you can do to reduce your overall costs and to ensure that you won't lose everything if the business ends up failing. While a small business start up loan can work, you need to look at all of the options that are available to you. Can you hit up some wealthy friends or family members to see if they would invest in your small business? This is a great way to find the initial funding that you need. Angel investors can also help to provide you with the money that you need to get your small business started. What other options can you use? How about looking at a credit card that comes with a 0% interest rate? Some of the most successful businesses out there were actually formed on credit cards! Some people look into a home equity line of credit because the interest rate is so low and it does give you a large amount of cash to access. This is something to really consider wisely as you should really try to keep your personal finances and businesses finances separate. You don't want to lose your home in the event that the business ends up failing and causes you to be in debt and to lose everything and to watch your credit rating take a major hit as well. |
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