Wednesday, November 19, 2014

Start your own business- How to get a loan for business

In this post, you can ref useful information about How to get a loan for business such as business loan rates, small business loan, business loan calculator … If you need more assistant for How to get a loan for business, please leave your comment at the end of this post.
Other useful material for you: free ebook: 12 tips for getting a small business loan

I. Contents of How to get a loan for business

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Get funding

When you start a business, there’ll usually be a period when you’re investing lots of time, effort and money before you start making a profit. It’s important to research your market to make sure your customers will really pay for your product or service before you do this.
Once you’re confident that they will, explore sources of funding to help with the costs of starting up your business.

Government schemes

You might be able to get help from a government-backed support scheme if you need some initial funding to test and develop your business idea.
Search for business finance using the finance finder tool to see which schemes you may be eligible for.

Get a bank loan

Once you can show that there’s a market for your idea, one option for funding your start-up costs is getting a bank loan. You’ll need to be able to:
  • give the bank realistic cash flow forecasts
  • prove that you’ll be able to pay back the loan with interest
Watch a video on forecasting business finances, including sales, profit and loss, and cash flow.
The bank might require you to provide security against your loan, like your house or car, in case you don’t repay. You should think carefully about how much risk you’re willing to take on before you get a loan or give any personal guarantees.
Find business finance in your area using the British Bankers’ Association’s finance finder tool, including business angels (individuals who invest in start-up businesses), regional funds, government schemes and banks.

Selling shares

If you need more investment, you might be able to raise money to fund your growth plan by selling shares in your business. You can do this by getting friends and family to invest. However, if this isn’t enough you can look for sources of ‘equity funding’, including:
  • ‘business angels’ (wealthy individuals who invest in start-up businesses)
  • ‘venture capital’ from companies who invest large sums of money in businesses that they think will grow quickly (known as ‘private equity’ companies)
  • ‘crowdfunding’ (where a large group of people invest money in a business idea, usually via the internet)
  • alternative sources of funding like ‘peer-to-peer lending’
Any outside investors will own the company jointly with you and the other founders. They have a say in the running of the company, and are entitled to get a share of the profits, known as ‘dividends’.
You should get legal advice before selling shares in your business.

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II. Business loan videos

1. How to get small business loans from banks, private lenders and microloan lenders

2. Tips for Getting a Small Business Loan from Joaquin Gallardo of Wells Fargo

III. Business loan ppt

1. How to Get a Small Business Loan Fast!
2. How To Get a Business Loan with Bad Credit

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• Small business loan calculator
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