By - Antonio Hicks

Get An Idea Of Bank Loan For Startup Business

In a start-up funds play a pivotal role and securing it is one of the biggest challenges for entrepreneurs. As there are several options available related to funding, it is important to understand the available schemes carefully and then choosing one wisely by understanding the financial position and the requirements.

Do Banks Offer Start-Up Loans For A New Business Venture?

There are many investors and capital firms who invest a lot of funding to these start-ups along with that there are banks who also provide funding for the start-ups however entrepreneurs are not that much aware of that fact. In U.S., banks are one of the largest funders for the start-ups each year. Banks and financial institutions provide financial assistance to the companies in all stages of a business lifecycle. Start-ups can lend the funding as a working capital or asset backed loans depend upon the desideratum. Banks used to lend if they find the business model is sustainable. They examine the returns from the business and whether the business has the potential to pay back the loan along with that management experience and expertise play a key role in this.

Do Banks Offer Start-Up Loan To Businesses Beginning In Unusual areas?

In order to get a funding for your start-ups in unusual area, there should be a proper business model. Banks usually insist on higher collateral security coverage typically with other sources of income. If you can provide the same, Banks will definitely lend you the funding for the start up with novel business models.

Can A Start-Up Get Bank Loan For Research Work And Technology Development?

It is possible that you can get a start-up loan for research work as well as technology development from banks. Any loan that is backed by asset can be utilized to develop latest technology as well as marketing or any other efforts for expansion of a start-up venture. Loans backed by asset will be provided typically depending of the market value of any residential, commercial and industrial property that will be pledged. Apart from the collateral that will be offered as a security, an individual also need to make the bank understand the expected financial returns from their business and funds’ source to meet the interest as well as principle of the loan that will be scheduled on time.

Can A Start-Up Loan Be Availed To Buy Equipment Or Machinery?

Any start-up can get hold of term loans to buy equipment or any machinery. Banks extend the loans for any purchase and commissions of any capital asset like machinery or equipment for using it in the business.

Can A Start-UP Loan Be Obtained For Stocking Inventory?

If you are going to begin a start-up venture, you can get a loan from banks for your stocking inventory or to provide credit to consumers. Banks usually try to assess working capital need of any business on the basis of the projection that is provided as well as take a conservative approach for lending any working capital amount.

Will It Be Possible For A Start-Up To Get A Bank Loan Without Collateral?

If you are planning to begin a new business, you must be eager to know how to get a start-up loan without collateral for financing your ideas. There are two main types of loans; unsecured as well as secured. The major difference between these two types of loans is that the first one needs an asset that will be acting as a security i.e. you will require collateral. But the second type of loan comes with no such necessity. There are some start-up loans that are accessible without any collateral. They are not easy to get hold of or readily obtainable like standard secured loans.

How Should You Approach A Bank Or Private Loan Providers For Start-Up Loan?

Before you approach a bank or any private loan provide with a request for financing your business, you need to prepare one such pitch that will explain your business model, your background, the revenue model projected sales, profit, rate of growth as well as returns. Return on the investment is a major factor for banks and also equity investors. So it is crucial for you to collect, acquaint and also compile all details in a presentable report at first. Once you are ready with your investment pitch, you need to identify the prospective banks that include schemes or any facility to provide the needed funding. You need to make up your request in such a way that it will suit into the framework of all the financial institutions lending policy. So you should not request for funding at any institution that only offers term loans. After completing these two steps, you can approach a financial institution or private lender and exhibit your pitch as well as funding request to them.

Thus you are aware of the available financing from banks as well as private loan providers. You must understand your situation well and then opt for the most viable funding option accessible to you. This way you will be able to manage the required fund for your start-up venture.

 

By - Antonio Hicks

How Do You Get A Grant To Start A Business For A Woman?

The fact that the grant is free financing makes the competition to be fierce among women entrepreneurs. However, if the will is there, the light at the end of the tunnel will appear. We shall be looking at places where women can look up to for the grants that will inject life into their business.

Grants.gov

The above site is where to be for women that need grants for their business. With a unique 9 digit identification number (DUNS). There are results at the left hand of the page under the tag eligibility; filter it and you will be able to access the grants that are there for women in business.

The Girlboss Foundation Grant

The operation of this foundation dates back to the year 2014 and it is the brainchild of entrepreneur Sophia Amoruso. Grants can be gotten here twice a year by women who need capital to push their business forward. Each of the recipients is entitled to $15,000 and those that can qualify for the grant are women who are into any of the following fields of business: design, fashion, music, and the arts. Successful candidates are the ones that can convince the panel that they are in dire need of the finance coupled with their creativity and business acumen.

Economic Development Administration

If the will is there for women entrepreneurs who need cash to beef life into their business, then there is a way out. Another area to look up to is the one stated above. Each state, especially in us and even some cities, have economic development resources whose main target is the development of the local economies. Taking California as a reference point, there are several economic districts there in the mould of Superior California Economic Development District whose main concern is to provide funding for local entrepreneurs for their business. Women can look up to such for business founding.

Amber Grant

This is another area that women can look up to for grants going by the frequency with which they give grants to women. This is done every month of the year. Successful women applicants will receive a $2,000 grant. The process here is pretty simple; the application fee is $15 and you are expected to describe your business line of operation and explain how you intend to make use of the money upon approval. At the end of the year, the best that can prove the success of effective use of the grant is granted an additional $25,000 to beef up the business further. This is a place where women entrepreneurs can try their luck.

Eileen Fisher Women-Owned Business Grant

Each year, this foundation awards the bulk sum of $100,000 to women in business. This some is spread among a maximum of 10 women each year. If you are interested, then you must fulfil the following conditions: the business ownership and leadership should be made up of about 51% women; the business should show proof of being in business for a minimum period of three years; the average turnover per year should not be less than $1million and the business interests should be focused on positive impact on the environment/social change.

Minority Business Development Agency

Are you a minority business owner? If yes, then you can get the desired grant easily by checking on what is on offer at MBDA. The chances are high for women in business to get the desired business funding here. Aside from granting the needed finances, they give education for women in minority business on how best to handle and sustain their business line of operation for better effectiveness in business.

NASE Growth Grant

The number pre-requisite to obtaining the grant for business here is to be a registered member of NASE. You will be required to identify a particular business need and go on to state your blueprint on how you are going to fill the gap. Those that are successful and can convince the panel will be given a grant of $4,000 business development grant. This is for real, so far, they have given such grants to the tune of $1,000,000 to beneficiaries over the years past.

FedEx Small Business Grant Contest

This is dedicated to women in business. Those that are successful with their application are expected to get the sum of $125,500 in total cash and prizes. This is inclusive of credits targeted at FedEx printing and business services. The grant is spread across 10 women recipients at various sums. Successful applicants are determined through a voting process; each of the applicants is expected to project their business line of interest.

Conclusion

The above areas of references are sure areas that women can look forward to getting the much-needed funding for their business. The rules are simple; follow them and the results will follow.