It costs approximately $30,000 to start your own business.
Unless you’ve been financially preparing for years (or already have the capital through other means), you’re going to need some outside help.
While some loans have lengthy application/approval processes, there are plenty out there that exist to give you cash fast.
Not sure where to start? Don’t worry, we’ve got you covered.
Let’s take a look at everything you need to know about quick small business loans.
Business Lines of Credit
A business line of credit works like a credit card that you use for your business. You can dip into available balance whenever you need to while getting your company up and running.
Compared to other loans, getting a line of credit is an attractive option because you can control the amount you pay in interest by spending less.
For example, if you have a credit line of $50,000 but have only used $5,000 so far, you only owe interest on the $5,000.
Working Capital Loans
With these loans, you often need to offer no collateral, the approval process is quick, and your credit score may not be as big of a factor as it is with other loans.
Additionally, this type of loan is meant to fund your company’s daily operations, you’ll be able to secure funding in very little time.
However, the interest rates tend to strongly vary from lender to lender, so you’ll want to shop around in order to find the best deal for you.
The last thing you want is to be stuck with a working capital loan that has a 30% interest rate when a little extra research could have gotten you one with 10% or 15%.
Short-Term Loans
Term loans are typically given to small businesses that are already established and have financial documentation to prove their earning potential, but that doesn’t mean you can’t get one before you start your company.
If you have stellar credit, good repayment history on your other debt, and a way to prove your earning potential (a solid business plan, opening a medical practice, etc.) then you have a good shot at securing a short-term loan.
These loans do often require you to offer collateral, though, so keep that in mind before you agree to anything.
Equipment Financing
Equipment is one of the most significant expenses an entrepreneur faces. This is especially true in the medical industry.
If you mostly need money for this cost, equipment financing is your most solid option.
The equipment itself serves as collateral, meaning you won’t need to offer your car, home, etc. to secure funding.
You may need to make a down payment, but it’s not uncommon for equipment loans to cover 100% of your equipment expenses. From there, you can use this equipment while running your business to generate revenue and help pay off your loan.
Understanding Quick Small Business Loans Can Seem Difficult
But it doesn’t have to be.
With the above information about quick small business loans in mind, you’ll be well on your way to getting your company up and running.
Want to learn more business tips that can help you succeed in the future? Our Resource Center has all the info you’ll need.