{"id":33004,"date":"2024-03-15T11:22:41","date_gmt":"2024-03-15T11:22:41","guid":{"rendered":"https:\/\/swoopfunding.com\/ie\/start-a-business\/how-to-get-a-loan-to-start-a-business\/"},"modified":"2025-01-27T18:45:49","modified_gmt":"2025-01-27T18:45:49","slug":"how-to-get-a-loan-to-start-a-business","status":"publish","type":"start-a-business","link":"https:\/\/swoopfunding.com\/ie\/start-a-business\/how-to-get-a-loan-to-start-a-business\/","title":{"rendered":"How to get a loan to start a business"},"content":{"rendered":"\t\t
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Thousands of<\/span>\u00a0new businesses<\/span> were launched in Ireland in 2023 and the pace of entrepreneurship shows no sign of slowing down. Doing your own thing in business is clearly the way to go.\u00a0<\/span><\/p>

Many of these budding businesses used personal savings and funds from friends and family to get off the ground. But what do you do if you don\u2019t have cash to hand and no personal sources to finance your great idea? Startup business loans are designed to help new organisations get up and running. More readily available from online lenders than traditional banks and credit unions, these specialised forms of financing can make all the difference when launching a new company, giving entrepreneurs the critical funding they need to get their business through the early months and years.\u00a0<\/span><\/p>

So how do startup loans work and what do you need to get one? Read on to find out all you need to know about getting a loan to start a business.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tGet a quote<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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What are the different types of startup business loans?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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There are many types of startup <\/span>business loan<\/span><\/a>. Interest rates, fees and terms and conditions can vary significantly. This means it is important to review all the options before settling on a deal. Here’s a rundown of the best startup loans to support your new venture\u00a0<\/span><\/p>

Term loans<\/b><\/h3>

This is the most common startup business loan. You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up to 25 years. <\/span>Borrow up to \u20ac5million<\/span>. Collateral may be required.<\/span><\/p>

Lines of credit<\/b><\/h3>

A startup loan that functions like a high-value credit card but comes with lower interest rates and fees. Organisations can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. The best thing about a <\/span>line of credit<\/span><\/a> is that you only pay interest on the sum you withdraw, not the whole line. This can significantly reduce your borrowing costs. Collateral may be required.<\/span><\/p>

Equipment loans<\/b><\/h3>

Equipment loans<\/span><\/a> use the asset you\u2019re financing as security, similar to a car loan or a residential mortgage, so no added collateral is required. Buy machinery, furniture, technology, etc. Use the equipment as you pay for it while the lender maintains a lien over the title of the machinery until the loan is repaid.\u00a0<\/span><\/p>

Merchant cash advances<\/b><\/h3>

Available for businesses that accept customer payments by credit and debit card. You borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.<\/span><\/p>

Personal loans<\/b><\/h3>

Personal loans work like business term loans, providing a lump sum of cash that you pay back over time. Personal loan lenders are often more relaxed about the use of funds and may demand less supporting documentation. Note that personal loans usually have lower borrowing limits and higher interest rates and fees than business financing. Collateral may be required.<\/span><\/p>

Loans from friends and family<\/b><\/h3>

Many small business owners borrow money from family and friends, especially when they\u2019re trying to start a new venture. However, using funds from loved ones can often be a source of contention if the ground rules are not clear from the start. If you have access to this type of financing opportunity, make sure your funders know if they are providing a loan, a gift or an investment from the start. If there are plans to pay the money back, put this down in writing with a clear repayment schedule \u2013 including a plan of action if things do not turn out as expected and you cannot pay the funds back on time, or at all. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How to apply for a business loan<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Applying for a startup business loan is similar to applying for most other types of business funding. To improve your chances of success ensure you have your ducks in a row before you apply:<\/span><\/p>