If you’re ready to start your own small business, you may need to take out business loans to get the funds you need to get your business off the ground. SBA loans can be confusing to anyone who has never handled business finances before, but there are a lot of great resources out there to teach you more about getting these loans.
First, you need a business plan.
The bank offering you a loan will need to see exactly how you plan to push your business toward success. This plan should be clear and concise and it should include information about how you plan to pay the loan back.
Next, you need a roughly 10% equity injection. This functions like a downpayment for a mortgage. It needs to be placed into a bank account at least three months before you take out a business loan.
SBA loans are highly regulated by the federal government, so where you get your loan isn’t particularly important. If you’re comfortable working with your local credit union, they may be a great resource for funding your new business.
If you have any further questions about small business loans, reach out to lenders or financial advisors in your area.