In recent years, it has become harder and harder to get funding for small business loans. This is especially true if you don’t have assets to use as collateral to back up the loan. This has led many small business owners to turn to more expensive financing for their businesses. This has shown a further negative impact on the strength of small businesses in America. We’ll discuss the implications of this shift, in today’s article.
As obtaining a small business loan becomes almost impossible in today’s economy, many new business owners and self-employed individuals are turning to high-interest business credit cards instead. Although these cards have their own function as a means of dealing with day-to-day cash flow issues, they are a poor choice for seed money. With early profits being typically very low, the odds of running out of seed money, or having the interest get on top of you before you become profitable, is very real indeed.
So, what should you do if getting a small business loan is so difficult (on top of trying to avoid high interest credit) to fund the start up of your company? One thing I’d suggest is to contact your local office of the Small Business Administration.
Under special federally subsidized loan programs, this can be the best place to start for non-established businesses and trade professionals. The subsidies and guarantees greatly reduce the risk for the bank. As such, funding is much more available.
For more information, make sure to consult with a financial professional that deals with small businesses.
For more information, go to Small Business Loan at http://www.unsecuredbizloan.com/small-business-loan/