Loans For Businesses

Loans for business start up are hard to come by especially if the borrower has no previous business ownership experience or has had credit or financing problems in the past. Funds provided to companies vary in nature depending on the type of company and the reason for the monies. These corporate funds come in three common forms; short term, intermediate term, and long term. Short term ones typically result in lengths of less than one year. These types of monies available to companies help the owner to get the operation going. If the place of employment is considered a service company, then any number of short term funds that would probably be adequate to get started.

Those that have a product oriented company, or a service place of employment that requires more expensive equipment to stay in operation, might desire the intermediate loans for businesses. These monies stretch repayment options from 1-3 years and can greatly aid in the need of a small companies borrowing funds in order to keep current with the market demand. The monies that are larger should be long term, 3-10 years. These loans for businesses can greatly aid an already existing partnerships grow and expand, thus creating more jobs and a product or service to a larger scope of customers. 

Those that are seeking loans for businesses should check with their local SBA chapter. The SBA or Small Business Association offers links to resources for entrepreneurs seeking specialty loans for business, or those that are seeking general funds for companies. The SBA does not directly fund any loans for business. If qualified, the SBA will guarantee these funds should a borrower default through their lender. The SBA will not guarantee the full amount of the money needed, but upwards of an 80% guarantee is not uncommon. 

People should be aware of their personal FICO score, as this credit reporting score will greatly determine the interest rate offered for all loans for businesses. The lower the FICO score, the higher the loan interest rate will be. The higher the FICO score, the lower the loan interest rate will be. It is recommended that all potential loans for business borrowers obtain copies of their credit report from all three nationally recognized credit reporting agencies. These agencies are: Equifax, Experian, and TransUnion. Funds for these companies consultations are also strongly advised before making application. "But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you" (Matthew 6:33).