5 WAYS A STARTUP BUSINESS CAN GET A BUSINESS LOAN

5 WAYS A STARTUP BUSINESS

CAN GET A BUSINESS LOAN

5 Ways a Startup Business Can Get a Business Loan

5 Ways a Startup Business Can Get a Business Loan

Most entrepreneurs think that because they are only starting their business that there is no chance of them getting a loan. But in reality, there are actually many different financing options that business owners have in which they can qualify, even as a startup.

As you already know, banks REQUIRE good credit AND collateral to get approved for business financing. But still, most people only go to their bank when they need money, because it's the only place they know to go to. But the most common business bank loan, SBA loans, only account for 1.1% of all business loans (Department of Revenue 2013). The reality is that the big banks are NOT the suppliers of most business loans. And even though they require good credit and collateral to qualify and longevity in business, many sources don't.

The big banks are very conservative, as most know. Due to this they commonly won't lend to businesses in which the business owner has challenged credit or businesses that don't have collateral or companies that are in their first two years of operation. But even though startup businesses don't succeed, many can and will if they receive proper capitalization. And many business loans make really good sense and have risk low enough based on other factors, even if the business is just getting started. So what types of funding can and can't you get for a startup?

Before you know where to go to get money as a startup, you first should know where

NOT to go. These sources might be appealing based on their offers and promotions, but they will not typically lend money as a startup. SBA loans, conventional bank financing, even private investor money, all have stringent requirements and usually require longer time in business for approval.

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5 Ways a Startup Business Can Get a Business Loan

Where NOT to Get Financing as a Startup

SBA and other bank conventional loans are tough to qualify for because the lender and SBA will evaluate ALL aspects of the business and the business owner for approval. To get approved all aspects of the business and business owner's personal finances must be near PERFECT. There is no question that SBA loans are tough to qualify for. This is why according to the Small Business Lending Index, over 89% of business applications are denied by the big banks.

Many people think that when they are just getting started a private investor is the best answer. But in reality investors typically want average or better credit of 650 scores or higher in most cases, and they almost always want you to pledge some type of collateral. They will also want solid financials for at least two years. This means they'll want to see tax returns showing large net profits that are increasing over time. Think of private money as being for SBA and conventional bank loans that just miss the mark.

Where TO Go to Get Financing for Startups

Unsecured financing is the best type of financing for startups.This financing requires no collateral for approval, and many startups don't yet have collateral so unsecured financing is a perfect fit. And the loan amounts are the highest with unsecured financing of all other startup loan options. And rates are low, the lowest you'll find on initial startup money.

5. Unsecured Financing

Unsecured financing usually comes in the form of credit cards or credit lines. The difference between credit cards and credit lines isn't much. With credit cards you will pay a higher fee to take cash out than with credit lines. But you will also get a much lower "intro" rate with cards that you won't get with credit lines. And with almost all credit lines, you'll need to show tax returns for approval, meaning they don't work

?2014 Credit Suite, all rights reserved. No reproduction or use of any portion of the content or work or the entire work is permitted without the express written permission and authorization of the publisher. However the publisher of these materials routinely grants authorization for reproduction or use

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of this work, in whole or in part. If you would like to use any portion of this material in a book, article, e-zine, newsletter, radio, or television broadcast,

pod cast or in any other seminar teleconference or other events or publications please e-mail: info@ or Call (877) 600-2487

5 Ways a Startup Business Can Get a Business Loan

well for startups.

Business cards work VERY well for startups and you can get a multitude of cards with very high limits. And the best part is that they usually come with 0% intro rates for the first 6-18 months. This means you won't be forced to pay high fees and interest during the crucial starting phase of your business.

You won't want to go out and try to find the best card for your business, that's for amateurs. Instead, you'll want to get the MOST amount of money, best cards, and at the best terms. To get this you'll want to work with a lender who offers a program known as Unsecured Business Financing, or UBF.

With UBF you can usually get five times the amount of money you would get on your own when applying for a credit card. The reason for this is that most true business cards won't approve you unless you have two inquiries on your credit report. So if you try to go out and find some cards to apply for then start to apply, no matter how good your credit is you'll start to get denied because each time you apply another inquiry is added, and with only two of those you'll disqualify.

But UBF lenders know the business card world, and they know it well. This provides you some major benefits that won't get when applying by yourself. Firstly, they know the sources that will give you the most amount of money based on your unique situation. And they then apply for credit in a certain order and in a certain time frame to get you approved for the highest limit cards you can get, and get multiple of them.

Using UBF you can usually get five cards that mimic your highest limit revolving account reporting on your credit now. So if you have a $10,000 credit limit account now on a credit card, the lender will usually get you up to five other $10,000 limit cards totaling $50,000.

We once tested this with a client with over an 800 score. He wanted to go to his bank to get the most unsecured financing he could get, and we helped him with all aspects of preparing his application perfectly. He got approved for $12,500 in funding. But our UBF lender got him approved for $75,000. This is the case with almost all UBF financing; you can get up to five times what you'd ever get by applying on your own.

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?2014 Credit Suite, all rights reserved. No reproduction or use of any portion of the content or work or the entire work is permitted without the express written permission and authorization of the publisher. However the publisher of these materials routinely grants authorization for reproduction or use

of this work, in whole or in part. If you would like to use any portion of this material in a book, article, e-zine, newsletter, radio, or television broadcast,

pod cast or in any other seminar teleconference or other events or publications please e-mail: info@ or Call (877) 600-2487

5 Ways a Startup Business Can Get a Business Loan

And with UBF you get REAL business credit cards. This means they don't report to the consumer reporting agencies like most "business" cards you'll find. Instead they report your credit to the business reporting agencies. This is a really BIG deal because 30% of your consumer credit score is based on how much of your credit you're utilizing. So if your business cards report to the consumer agencies and you charge more than 30% of the limits, you can tank your scores 100 points or more, making it harder for you to get other business financing.

These cards help you build your business credit as well as get you money, another thing that's a BIG deal. It's actually huge because as these accounts report you are building a business credit profile for your EIN that's not linked to your SSN. And you are building this profile with high limit cash cards. This means within a few months you can then use your newly established business credit profile to get even more, high limit cards. These new cards will come with no personal guarantee or liability from you, and won't even require a personal credit check saving you from the consumer credit inquiry.

And these cards usually come with 0% intro rates for 6-18 months. This means you can keep payments low as you start building your business. Most businesses do fail within their first year of operation due to lack of capital. So this 0% rate can literally save your business. You will need good personal credit to get approved, such as a 700 credit score or higher without any recent derogatory items reported.

You can be approved for as much as $150,000 in unsecured financing. We often see approvals as high as $50,000 on single cards. Your actual approval amount will vary based on what your highest credit limit accounts are now. Usually, expect to get five cards that are equivalent to your highest limit account you have reporting now. High approval amounts with 0% rates are only a couple of the main reasons UBF is the best financing type for startup businesses.

4. Asset Based Financing

Asset based financing, also called collateral based lending, lends you money based on the strength of your collateral. Since your collateral offsets the lender's risk, you can be approved with credit issues or as a startup and

?2014 Credit Suite, all rights reserved. No reproduction or use of any portion of the content or work or the entire work is permitted without the express written permission and authorization of the publisher. However the publisher of these materials routinely grants authorization for reproduction or use

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of this work, in whole or in part. If you would like to use any portion of this material in a book, article, e-zine, newsletter, radio, or television broadcast,

pod cast or in any other seminar teleconference or other events or publications please e-mail: info@ or Call (877) 600-2487

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