Loans for Startups: Small Business Borrowing Guide


If you have just started your small business, we feel the need to congratulate you. Before you start thinking about the loan and wondering if you’re going to be able to meet all the requirements, you should give yourself some credit for setting up your own company. It is a challenging task for so many reasons, but it can also prove to be the best decision you’ve ever made. After all, the biggest success stories out there are about entrepreneurs who have started off small, and they too needed to borrow money in order to build an empire. Let’s now take a look how you can do the same as well.

First things first. Before taking any further steps, make sure you have clearly defined your business strategy, and what particular goals you wish to achieve with the startup. Don’t be afraid to think outside the box, and feel free to use your imagination to the fullest. Once you have your goals on paper, you make the first, detailed plan with steps how to make your dreams come true.

Once you have constructed your proposal with the possible advantages and all the good reasons why someone should invest in your business, here is a list of those who are in a situation opposite to you. They have all the funds necessary, but they lack original ideas or enough commitment to do what you have set off to complete.

  • Angel investors

The name can be misleading, however. These are individuals who are very willing to invest into your business at the beginning, but you can even expect them to suggest partnership to you. Be prepared to have your reasons for a positive or a negative answer, depending on your decision.

  • Banks (and other traditional lenders)

As opposed to the previous category, these are usually considered to be the devils when it comes to borrowing from them. Generally, banks aren’t loved by many. However, you don’t have to go along with the common opinion. There are lots of banks out there offering various good deals. It only takes some time, patience, and reading of the fine print.

  • Venture capitalists

Venture capitalists usually aren’t that interested in becoming partners, so you can count on having your freedom to do as you please. Prove that you are perfectly capable of earning high revenues and running a stable business, and the money is all yours.

  • Loan specialists

If you aren’t that keen on knocking on all the previously mentioned doors, and analyzing individual interest rates, conditions, or restrictions, turning to a specific commercial loan expert solution is the most practical way to go forward. You are required to present your plan, and leave it to them to find the best possible option for you.

  • Public funding

One more way of obtaining the desired investment fund is to go public and list your company on the stock exchange. Think of it as borrowing from an indefinite group of lenders. It can be a really quick way to receive payments if a big enough number of people recognize your potential for a huge success. On the other hand, you could feel the pressure to justify your decisions all the time, and you should come to the terms with the fact that your business operations will have to be open to general scrutiny.

  • Government support

Depending on the type of your business, British government offers you a wide array of grants and loans. As usual, secure have a feasible plan to display before you fill in the application form. Irish entrepreneurs seem to be particularly lucky in this respect. There are about 170 government supports for startups, so you’re bound to find the one for you if your business is based in Ireland.

Finally, here’s the last piece of advice: be very patient. You’ve just founded your startup, and you can probably hardly wait to show to the world (and to yourself) what a high flyer you are. Regardless of the person/organisation acting as your lender, you can definitely count on thorough scanning of your business ideas and your master plan. Get ready to be questioned and criticised, but most importantly, maintain the positive attitude and focus on your vision.



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Wednesday, 11 December 2019
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