|
|
SME loans - Know the various schemes
It doesn't matter whether you are an established business or a start up aspirant, it is imperative that you will need loans at times. It may not be a billion dollar question for an established business owner as to where he can get a loan to his business.
But a start up businessman has to do some home work in order that he doesn't get a raw deal. Here is a step by step walk for you that guides to getting a good deal on your small business loan.
Here are some broader considerations in preparing for loan, to begin with.
- Prepare a list of banks, credit unions and private lenders in the region or town of your business. This is important from the point that usually they do not entertain the applications not from their towns/cities.
- Collect information on minority business loans and disaster recovery loans too if it is applicable in your case.
- Collect data from various lenders such as private finance institutions, banks and credit unions about various loan schemes they have. This helps you in two ways.
- It helps in choosing the lender by rate of interest and terms.
- It helps to locate a lender that advances loans to your particular needs. Some institutions do not finance certain equipments.
- Preparing the application and documentation. This is the most important part of loan application. Though documentation is same, in principle, by all lenders, they might differ here and there slightly. You can choose the one that demands the minimum documentation.
- Compare the maximum and minimum financing a lender can provide you with. Because you will need to organize the balance cash injection from your own or borrowed sources. Also the rates of interest are different in each case. Most of the banks insist on your investment first.
SBA has listed out the names of the participants in its loan programs. You can also get the list from their local offices. (SBA as such does not give loans but it appraises and guarantees loans.) Here is a brief list of various organizations you can apply for loans. After evaluating the pros and cons on various parameters you can decide for your self.
- Almost all banks, irrespective of whether they are government or private banks do participate in SBA's small business loans.
- Certified development companies for (504) loans.
- Credit unions offer small business loans to their members.
- Venture capitals.
- Other non profit organizations including Christian organizations.
- MBDA - Minority business development agency.
- LED - Louisiana Economic development and LPFA - Louisiana Public Facilities Authority for existing businesses in the hurricane hit area.
Continue to : Various Schemes of SBA loan Programs
Related Articles
Business loans - Find out the options available
The right source for women business loans
What is SBA and what kind of loans does it offer to small businesses?
Avail the benefit of getting small business grant loans
Unsecured business loans - Go for it if you have the guts to repay it
Business start up loans - The alternatives available for budding entrepreneurs
Thinking for the Long Term? Get CDC 504 Loans
 Bookmark
this Page  Email
this to your Friend  Add
this page to del.icio.us
| |
Suggest an Article
