US Business Funding – How to Get Approved
US business funding is offered by many sources. The Small Business Administration (SBA) and several non-traditional lenders offers funding for small businesses. There are also commercial loan brokers and international business finance companies that can provide US business funding. The SBA is the federal agency designed to assist US companies with credit programs for start ups and related issues. There are also state-funded commercial lending programs.
US business funding normally offers a wide assortment of funding solutions for new companies that need short-term financing to expand and cover unexpected day-to-day expenses until their business is established and begins generating profit. Its interest rates begin modestly, but are often well within the means of a new business’s budget. Its requirements generally require a standard credit application, so if you are financing through a bank or other lender, you will need to prepare a business plan as well as a personal financial statement to ensure your application is approved US business funding.
If you plan to obtain US business funding through a bank, you should review their loan policies for their financing options. Typically, a bank will not provide unsecured loans to start up ventures, so you must have at least a good credit history and a solid business plan. Most banks require business owners to have a minimum of two years of cash flow coming in before they are considered for this type of loan. Your bank may also require you to submit a completed credit application and to pay the customary credit fees.
US business funding offers several non-traditional lenders that specialize in Secured financing. These lenders often require more collateral than traditional banks do for loans. The collateral offered by these lenders are usually higher interest rate investments or real estate owned property. Because of the increased risk to the lender, the interest rates are usually higher. Typically, the interest rates on these types of loans are between twelve to fifteen percent.
In addition to the traditional financial institutions, there are also several online lenders that offer US business funding. One advantage to working with these online financial products is that many will provide you with an online application to fill out. You will likely be asked to fax or mail in your financial information, including your personal information, business information, and your credit application. The online form can be completed in a matter of minutes, and most applications are processed within twenty-four hours.
Typically, US business funding offers you up to twelve months to pay off your loan, but you are not locked into a commitment to pay that amount. The repayment terms can vary, and some companies may allow you to pay the loan off in one to three months. In addition, if you have an emergency that forces you to shut down your business for at least three months, the company will repay your defaulted financial products in full to avoid foreclosure. Of course, you must have a current financial plan in place to avoid such a drastic loss of business.
When comparing various US business funding companies, it is important to find one that offers competitive loans with manageable interest rates. As with all financial products, interest rates are always going to fluctuate. It is highly recommend US business funding loans be based on the prime lending rate (this includes all lenders, not just online lenders). Many of the US business funding companies will also provide financial calculators so you can figure out your monthly payment and figure out your interest rate. Once you have chosen a lending company, you should always read the contract very carefully to understand all the fine print.
Finally, when you select your online lender, you should make sure they are able to accept your application. If they cannot process your application, you will be disappointed, and you may end up losing your home. A great way to ensure you get approval for US business loans is to get references from friends and family who have used this lending service. This helps you build a good reputation with these lenders. Most online lenders will give you an online application, but you will need to send them a hard copy of your credit report so they can run your credit reports to check for errors. You should process your application in a timely manner to ensure that you get approval for US business loans.