With local banks disappearing from a new small town street corner every day and credit unions approving fewer and fewer small business loans, where is an entrepreneur to turn for business financing? The answers are many, but they may not be as obvious as the traditional lenders. In fact, many looking for small business loans are unaware of the non- traditional lenders out there, let alone the variety of products they offer. How is one to navigate through the dense fog of small business lenders?
Small Business Administration
The Small Business Administration (SBA) is a great first stop for any want-to-be business owner or established owner looking for financing. SBA guaranteed loans are designed specifically for the small business market, and there are many tools available to help you out, including a business plan template. Express SBA loans are available for those who need financing more quickly.
Special Interest Groups
These are perhaps one of the most underutilized sources for small business financing. The main reason is that people simply do not know they are an option. However, many special interest groups offer business loans for women, minorities, and even veterans. Most often these loans are designed specifically for and available only to those that fit into the specific target group. This drastically reduces competition for these loans, thus providing women, minorities, veterans, or whatever the target group is an advantage where they may otherwise be at a disadvantage. Even those groups that do not offer loans specifically often provide help and support to small business owners and to those looking to start a business.
Small Business Loan Marketplace
Small Business Loan Marketplaces such as Biz2Credit.com do not offer financing on their own, but rather prescreen those looking for loans and match them with lenders that offer products that may fit their needs. This cuts down on a lot of time and money that would otherwise be spent digging through mounds of paperwork comparing terms and business loan rates trying to find the perfect match.
There are other options when it comes to small business loans. The traditional lenders are still around, but they are not always the best bet when it comes to financing for startups or even established businesses. Take a look at what else is out there to ensure you find the financing product that best fits the needs of your business.
This article was submitted by Faith Stewart. Faith Stewart has a BBA with a major in accounting and spent 10 years working in the various aspects of accounting and finance before pursuing her passion for writing.