You’ve finally decided to fulfill your entrepreneurial dreams of owning your own business breeding and training show hamsters. You’ve already written a business model, but you need a small business loan to make it all happen. There are so many options available that picking the right one for you can be overwhelming, but it doesn’t have to be.
Get your hamsters in a row before you begin the loan application process. Many lenders want you to have a good credit score before they will loan you money. You may also need to provide documents such as tax returns, articles of incorporation or organization, financial projections for your business, and a business plan that includes your strategy on how those adorable rodents will earn you money.
As long as the government is open and moving on the hamster wheel, you can check out the U.S. Small Business Administration about applying for a SBA loan. The government doesn’t lend money directly, but they work with partnering lenders to make it easier for small business owners to get capital by reducing the risk. There are some eligibility requirements for these types of loans. For example, the business must be located in the United States. So, don’t pack up and move those little guys to Canada if this is the avenue you decide to explore.
Take your hamsters to the bank. If you have a financial institution you trust and like working with, go to them and see what kind of loans they have available. With all the online lenders available, this option may seem old fashioned to some people, but others still like being able to sit across from their lending officer while they discuss their plans. Wells Fargo has 5,700 bank branch locations from coast to coast. You can apply for a Wells Fargo small business loan either online or at one of their branches, depending on your preference.
Get your rodents a grant. Grants are money you don’t even have to pay back. These funds can be used in addition to a loan, or in place of, depending on how much capital you need. FedEx has a yearly Small Business Grant Contest where an entrepreneur can win up to $50,000. Once your business is established, the Eileen Fisher Grant Program offers women business owners grants when they’re ready to expand. Grants.gov is an online hub to check your eligibility and apply for grants for your small business.
Think outside the hamster cage. Peer to peer lending, or P2P, has been gaining in popularity the last few years and can be a good option when you’re shopping for a small business loan. Rather than coming from a bank, this loan is funded by a group of individual investors. Lending Club screens applicants and allows them to borrow up to $40,000 for a personal loan. The website boasts low, fixed interest rates. Funding Circle says applying online for one of their P2P small business loans only takes ten minutes. You can borrow between $25,000 and $500,000, so if you need a bundle of cash to get your hamsters trained, this option may not be right for you.
Don’t let money concerns take you away from your furry little friends! You have a business to run and a dream to fulfill.