You’ve got an idea for something BIG. It’s original, exciting, and guaranteed to shake things up. So what’s holding you back?
You don’t have it, and you know you can’t get your idea off the ground without it. Dipping into your own savings may be a possibility, as is asking friends and family for startup loans. But after those options, the complexities of startup business loans can intimidate even the most savvy of entrepreneurs. If you’re looking for ways to fund your big idea, here are five types of business startup loans that you should consider.
- SBA Loans | The US Small Business Administration (SBA) is an independent federal agency that works to strengthen the American economy by supporting small business entrepreneurship. As small businesses often struggle to secure startup financing, the SBA’s loan programs are worth looking into. SBA backed loans generally feature lower down payments and longer term financing, offering important flexibility to startups that will want to spend more time expanding their businesses and less time repaying their debts. Startup loans from the SBA can also be easier to secure than traditional bank loans. When lending to small businesses, the SBA guarantees a percentage of the loan, which means that companies that might not meet the financial criteria to secure standard startup business loans on their own might be able to obtain a loan through the SBA.
- Microloans | Not all startups need a ton of money to launch their businesses. Sometimes, all it takes is a little bit of cash to get the ball rolling. Microlenders like ACCION and other non-profit, community-based lenders provide loan programs that offer up to $50,000 in startup funding to small businesses in need of working capital, equipment, furniture, or supplies.
- Crowdfunding | When it comes to startup financing, crowdfunding websites have truly changed the nature of the game. By posting their business ideas on sites like Kickstarter and Indiegogo, entrepreneurs can encourage users to back their ventures through…