Are you looking for funding to start your business? You can raise funds through different ways such as personal funding, borrowing from friends or even trying a platform such as equity crowdfunding. Though some of these methods are modern, they may not be as successful as you expect. You can try a traditional means of getting capital such as applying for a loan.
You may face a challenge of lacking a business history for your start-up or a credit rating to convince a bank to give you a loan. Worry not because you can still get a business start-up loan through different products such as equipment financing. This can help you buy new equipment for your business as you use the equipment as collateral.
The lender of equipment financing deducts the costs of financing and interest fees from your taxes. It allows you to get enough money fast to start your business without waiting. You can also acquire good equipment like computers to facilitate the growth of your business. Use the revenue that the equipment generates to pay off the loan.
This kind of loan does not involve a lot of documentation compared to other types. A lender is also more willing to help since the equipment serves as collateral. To get this kind of loan, you should have a credit score of 600.
You should also consider getting business credit cards. This can give you quick access to credit. The credit card issuer gives you a maximum credit limit. You can use this credit card to purchase the necessary items for your start-up. This lowers the credit limit. Any payment raises the credit limit thus giving you access to funds.
You can build your business credit through the credit card. Ensure that you make prompt payments and maintain low balances for your business credit to grow. By creating your business credit over time, it makes it possible for you to qualify for better financial products in the future.
The business credit card keeps your business and personal finances separate. You can easily manage the budget of your company without interfering with personal funds. It also allows you to handle finances efficiently as you track your company’s expenditure. Such credit cards also come with bonuses and discounts that can help you save.
Credit line builder is another financial product that can give you start-up loan for your business. This allows you to work hand in hand with a finance company for you to apply for more than one business credit card simultaneously. It saves you a lot of application time and gives you a high limit from applying for various business credit cards. It, however, requires a high personal credit rating for you to qualify.
These start-up loans help you grow your business credit as they give you finances to start your business. They can help you get good financing opportunities that offer low rates for high loan amounts. You have to start from somewhere, right?