Bank or Credit Union Funding
Startup businesses are considered risky by banks and credit unions, so you might have a hard time getting access to loan money through these organizations. Before you apply for the loan, talk with the financial institution to learn more about the factors they are looking at when they make decisions about loan financing.
It is necessary to have a strong business plan in place, and you should take that business plan with you when you are applying for the loan. Sometimes, a financial institution might offer the loan with your personal name as guarantor. So, make sure that you are ready to carry the financial burden if needed.
Venture Capitalists or Angel Investors
If you can’t qualify for a loan through your bank or credit union, consider the option to work with venture capitalists or angel investors. These small business loans are private financing from individuals or companies who see value in your business.
Again, you will need to have a solid business plan in place to show the potential of the start-up. Network with other business owners and entrepreneur groups in your local area to find venture capitalists that might be interested in your business. Also, you can talk with your local Small Business Administration (SBA) to connect with people in your area.
When you are trying to secure and manage funds for your business, it can be very beneficial to have an accountant available to help with financial statements and analysis. Contact us today, and we will gladly help you get your start-up launched: (202) 789-8898