Small business loan

If you are feeling daring, you can apply for a small business loan. This type of loan generally has the lowest interest rate of any other option, but there are a couple catches. First, you pay interest on the entire loan, regardless of how much you are using at the time. Second, they are the most difficult to qualify for. Banks generally like to see a 30 to 36 month history of paying your bills on time, sufficient collateral to cover the loan, significant cash flow to service the debt, and a reasonable balance between your debt and equity. You will also be expected to have invested a significant amount of your personal funds into your firm. After all, why should they take the risk of your business failing if you are not willing to?

The US government recognizes that many small business cannot qualify for a small business loan on their own. If you are still interested in this form of financing, but don’t otherwise quality, you can seek help from the SBA. The SBA has many programs to assist small