{"id":28658,"date":"2024-03-15T11:22:41","date_gmt":"2024-03-15T11:22:41","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/?post_type=start-a-business&#038;p=28658"},"modified":"2025-09-25T18:09:44","modified_gmt":"2025-09-25T18:09:44","slug":"how-to-get-a-loan-to-start-a-business","status":"publish","type":"start-a-business","link":"https:\/\/swoopfunding.com\/us\/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<div data-elementor-type=\"wp-post\" data-elementor-id=\"28658\" class=\"elementor elementor-28658\" data-elementor-post-type=\"start-a-business\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3b3fcd2d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3b3fcd2d\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-78c7fa95\" data-id=\"78c7fa95\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-55d0851d elementor-widget elementor-widget-text-editor\" data-id=\"55d0851d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Almost <\/span><a href=\"https:\/\/www.commerceinstitute.com\/new-businesses-started-every-year\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">5.5million new businesses<\/span><\/a><span style=\"font-weight: 400;\"> were launched in the US 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><p><span style=\"font-weight: 400;\">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 organizations get up and running. More readily available from online lenders than traditional banks and credit unions, these specialized 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><p><span style=\"font-weight: 400;\">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<div class=\"elementor-element elementor-element-6dda3f4d elementor-align-center elementor-widget elementor-widget-button\" data-id=\"6dda3f4d\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-md\" href=\"https:\/\/us.swoopfunding.ca\/stage\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get 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<section class=\"elementor-section elementor-top-section elementor-element elementor-element-67e369c2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"67e369c2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1d6348ef\" data-id=\"1d6348ef\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-12a3a37d question elementor-widget elementor-widget-heading\" data-id=\"12a3a37d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">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<div class=\"elementor-element elementor-element-7b3bb6e8 answer elementor-widget elementor-widget-text-editor\" data-id=\"7b3bb6e8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">There are many types of startup <\/span><a href=\"https:\/\/swoopfunding.com\/us\/business-loans\/\"><span style=\"font-weight: 400;\">business loan<\/span><\/a><span style=\"font-weight: 400;\">. 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&#8217;s a rundown of the best startup loans to support your new venture\u00a0<\/span><\/p><h3><b>Term loans<\/b><\/h3><p><span style=\"font-weight: 400;\">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><a href=\"https:\/\/swoopfunding.com\/us\/business-loans\/large-business-loans\/\"><span style=\"font-weight: 400;\">Borrow up to $5million<\/span><\/a><span style=\"font-weight: 400;\">. Collateral may be required.<\/span><\/p><h3><b>Lines of credit<\/b><\/h3><p><span style=\"font-weight: 400;\">A startup loan that functions like a high-value credit card but comes with lower interest rates and fees. Organizations 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><a href=\"https:\/\/swoopfunding.com\/us\/business-loans\/business-line-of-credit\/\"><span style=\"font-weight: 400;\">line of credit<\/span><\/a><span style=\"font-weight: 400;\"> is that you only pay interest on the sum you withdraw, not the whole line. This can significantly reduce your borrowing costs. <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/collateral\/\">Collateral<\/a> may be required.<\/span><\/p><h3><b>SBA loans<\/b><\/h3><p><span style=\"font-weight: 400;\">Partially backed by the Federal Government, <\/span><a href=\"https:\/\/swoopfunding.com\/us\/sba-loans\/\"><span style=\"font-weight: 400;\">SBA loans<\/span><\/a><span style=\"font-weight: 400;\"> are offered by the US Small Business Administration and usually come with much lower interest rates and fees than other commercial lending. The SBA offers a range of loans, but SBA Express Loans and SBA Microloans may work best if you\u2019re seeking startup funding.<\/span><b><\/b><\/p><ul><li aria-level=\"1\"><b>SBA express loan<\/b><\/li><\/ul><p><a href=\"https:\/\/swoopfunding.com\/us\/sba-loans\/sba-patriot-express-loans\/\"><span style=\"font-weight: 400;\">SBA express loans<\/span><\/a><span style=\"font-weight: 400;\"> are a faster alternative to the standard <\/span><a href=\"https:\/\/swoopfunding.com\/us\/sba-loans\/sba-7a-loans\/\"><span style=\"font-weight: 400;\">SBA 7a loan program<\/span><\/a><span style=\"font-weight: 400;\">. Express loans can give entrepreneurs up to $500,000 to support their business and you will usually get a \u2018yes\/no\u2019 indication within 36 hours of making your application. Note that unlike their 7a counterparts, which are 85% backed by the US Government, express loans are only 50% supported, so lenders carry more risk. This means interest rates and fees may be higher.\u00a0\u00a0\u00a0<\/span><b><\/b><\/p><ul><li aria-level=\"1\"><b>SBA Microloans and Community Advantage Loans<\/b><\/li><\/ul><p><a href=\"https:\/\/swoopfunding.com\/us\/sba-loans\/sba-microloans\/\"><span style=\"font-weight: 400;\">SBA Microloans<\/span><\/a><span style=\"font-weight: 400;\"> are available up to $50,000 and may be secured with FICO scores as low as 500, or even with <a href=\"https:\/\/swoopfunding.com\/us\/start-a-business\/startup-loan-no-money\/\">no credit score at all<\/a>. However, this type of funding often requires collateral or a personal guarantee that makes you personally responsible for the debt, not your business. Community Advantage loans function like standard SBA 7a business loans but come with a maximum of $350,000 and other features that may make them easier for new businesses to obtain.<\/span><\/p><h3><b>Equipment loans<\/b><\/h3><p><a href=\"https:\/\/swoopfunding.com\/us\/business-loans\/asset-finance\/equipment-financing\/\"><span style=\"font-weight: 400;\">Equipment loans<\/span><\/a><span style=\"font-weight: 400;\"> use the asset you\u2019re financing as security, similar to a car loan or a residential mortgage, so no added collateral is required.\u00a0 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><h3><b>Merchant cash advances<\/b><\/h3><p><span style=\"font-weight: 400;\">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><h3><b>Personal loans<\/b><\/h3><p><span style=\"font-weight: 400;\">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><h3><b>Loans from friends and family<\/b><\/h3><p><span style=\"font-weight: 400;\">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<div class=\"elementor-element elementor-element-6879388 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"6879388\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/us.swoopfunding.ca\/stage\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Apply now<\/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<div class=\"elementor-element elementor-element-3a32811 question elementor-widget elementor-widget-heading\" data-id=\"3a32811\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How to apply for a business loan<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bdcfce8 answer elementor-widget elementor-widget-text-editor\" data-id=\"bdcfce8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">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><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Check your personal and business credit scores.<\/b><span style=\"font-weight: 400;\"> Even though you\u2019re asking for a business loan, lenders will usually scrutinize both your personal and business credit reports. Ensure they are correct. If there are information errors, get them fixed before applying for your loan.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Prepare your business plan and pitch.<\/b><span style=\"font-weight: 400;\"> Lenders will expect a detailed business plan that explains your business idea, why you need the funds and what they will do for your new venture once you have them. Business plans should do more than paint a rosy picture \u2013 explain the risks involved, what the downsides could be &#8211; and how you intend to overcome them. If you cannot produce a business plan yourself, it may be worth paying an external service to do this for you.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Research and compare lenders.<\/b><span style=\"font-weight: 400;\"> You can approach banks, credit unions and online lenders one by one, or you can use the services of a <\/span><a href=\"http:\/\/us.swoopfunding.ca\/stage\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">loan marketplace<\/span><\/a><span style=\"font-weight: 400;\"> that will immediately introduce you to a choice of startup loans from different lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for borrowers who have never taken out a business loan before.<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-55b9509 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"55b9509\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/us.swoopfunding.ca\/stage\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Apply now<\/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<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4564652 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4564652\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5e18f77\" data-id=\"5e18f77\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0aa7a62 question elementor-widget elementor-widget-heading\" data-id=\"0aa7a62\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What do lenders look at when evaluating business loan applications?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-48c66e3 answer elementor-widget elementor-widget-text-editor\" data-id=\"48c66e3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Getting a business loan is usually decided by several key metrics: How long your business has been operating, your credit report (business and personal), your business bank account data, annual <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/turnover\/\">turnover<\/a>, financial history and the strength of your business plan. However, if you\u2019re seeking funding for a startup loan your business will be very new or may not be trading yet. This means you won\u2019t have much business history and your paperwork may be minimal. In such case, the lender will typically pay more attention to your personal credit score when evaluating your loan application. It is also usual for lenders to ask for collateral or a personal guarantee when offering startup funding.<\/span><\/p>\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<section class=\"elementor-section elementor-top-section elementor-element elementor-element-15afaf7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"15afaf7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9706603\" data-id=\"9706603\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6742bfc question elementor-widget elementor-widget-heading\" data-id=\"6742bfc\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What If I'm rejected for a startup business loan?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bb590a9 answer elementor-widget elementor-widget-text-editor\" data-id=\"bb590a9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Getting a business loan is usually decided by several key metrics: How long your business has been operating, your credit report (business and personal), your business bank account data, annual turnover, financial history and the strength of your business plan. However, if you\u2019re seeking funding for a startup loan your business will be very new or may not be trading yet. This means you won\u2019t have much business history and your paperwork may be minimal. In such case, the lender will typically pay more attention to your personal credit score when evaluating your loan application. It is also usual for lenders to ask for collateral or a personal guarantee when offering startup funding.<\/span><\/p><h3><b>Things to do if you\u2019ve been rejected for a startup loan<\/b><\/h3><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Try and find out why you were rejected. Many lenders won\u2019t tell you this, but some will. Knowing why your application was denied can give you the chance to fix the issue before you apply elsewhere.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Don\u2019t send out dozens of new applications. Every time you apply for a loan, a hard search is recorded on your credit report. Too many of these in a short period can hurt your credit score, making it harder to get a loan. Choose who you apply to next very carefully. Check for any funding restrictions or limitations on the type of ventures they will finance. If your business falls outside their scope of operations, look elsewhere.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consider how you can make your application more attractive. This could include offering collateral, such as real estate, bringing in a cosigner, or asking for a different type of loan.<\/span><\/li><\/ul>\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<section class=\"elementor-section elementor-top-section elementor-element elementor-element-70a5d11 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"70a5d11\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-63479ca\" data-id=\"63479ca\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2ae7527 question elementor-widget elementor-widget-heading\" data-id=\"2ae7527\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How to get a startup business loan with bad credit<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ffcaf96 answer elementor-widget elementor-widget-text-editor\" data-id=\"ffcaf96\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">To get a startup business loan with poor credit, you\u2019ll need to prove that you have the ability to repay the debt. Here are some tips to help you get approved:<\/span><\/p><h3><b>Boost Your Credit Score<\/b><\/h3><p><span style=\"font-weight: 400;\">Even with <\/span><a href=\"https:\/\/swoopfunding.com\/us\/business-loans\/bad-credit-business-loans\/\"><span style=\"font-weight: 400;\">bad credit business loans<\/span><\/a><span style=\"font-weight: 400;\"> your credit score is still important. Spending the time to re-build your score before applying for a loan can often make the difference between success and failure. Start the process by following these steps:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Check your personal and business credit reports for errors \u2013 if there are any, get them fixed by contacting the credit bureaus and reporting the mistakes<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Register your business with the state (if applicable)<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Apply for an Employer Identification Number (EIN) from the IRS<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get a DUNS number from Dun &amp; Bradstreet, a major business credit bureau, so that your business credit activities are recorded<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Open business checking and savings accounts to keep your business finances separate from your personal account<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get a business credit card and manage it properly<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pay your bills on time \u2013 personal and business &#8211; and only take on debt when you know you can repay it<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Keep old credit accounts open even if they have zero balance and you never use them. Accounts with a few years\u2019 history can help boost your personal credit score.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you can, avoid moving business or residential location too often. Lenders like to see at least two to three years at your present location, and it also helps your credit score<\/span><\/li><\/ul><h3><b>Review lender requirements<\/b><\/h3><p><span style=\"font-weight: 400;\">Every lender will have their own financing criteria. Some bad credit lenders may need to see a steady cash flow and solid positive balances in your business bank account, but others may be more lenient about the need for cash on hand and strong revenues. Review the requirements of each lender and make sure you can meet their needs before applying.\u00a0<\/span><\/p><h3><b>What assets do you have?<\/b><\/h3><p><span style=\"font-weight: 400;\">If you can provide collateral \u2013 real estate, vehicles, machinery, etc. \u2013 it will usually be easier to get a bad credit startup loan. Once again, you should review each lender\u2019s requirements with regards to collateral \u2013 some will consider most types of asset, while others may only work with assets that are fully paid for and owned by the business.\u00a0<\/span><\/p><h3><b>Consider a cosigner<\/b><\/h3><p><span style=\"font-weight: 400;\">A cosigner is a person you trust and who has good credit and assets they are willing to offer as collateral. They agree to make the payments on your business loan if you or your business cannot. Essentially, the cosigner is a fail-safe for the lender. If you don\u2019t pay, they will. This can give added comfort to the lender, and in the right circumstances, may increase your chances of loan approval.<\/span><\/p><p><span style=\"font-weight: 400;\">A cosigner can be anyone you know \u2013 friends, family, business associates etc. They will need good credit and sufficient assets to cover the value of your business loan. You should choose your cosigner well. They should be someone you trust and who trusts you, because asking them to put their finances, assets and credit on the line is no small thing. Keep in mind that if things do not go according to plan and they end up paying back your loan it could have a detrimental impact on your relationship with them.\u00a0<\/span><\/p><h3><b>Make sure you can repay the loan<\/b><\/h3><p><span style=\"font-weight: 400;\">Taking on a business loan that can\u2019t repay won\u2019t help you or your new business. Review your cash flow and revenue projections before applying. Is there room in your budget to make the necessary payment instalments? Also be aware that although many business loans require monthly repayments, some startup loans will demand weekly or even daily instalments. Will your cash flow be able to handle these smaller, but more frequent payments?<\/span><\/p>\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<section class=\"elementor-section elementor-top-section elementor-element elementor-element-eae3ffb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"eae3ffb\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-25e36c9\" data-id=\"25e36c9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-688bef4 question elementor-widget elementor-widget-heading\" data-id=\"688bef4\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What are the alternatives to a startup business loan?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3148c0f answer elementor-widget elementor-widget-text-editor\" data-id=\"3148c0f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">There are many ways to finance a new business venture. If the options above do not work for you, it could be worthwhile to investigate these funding alternatives:<\/span><\/p><h3><b>Business Credit Cards<\/b><\/h3><p><span style=\"font-weight: 400;\">It may be possible to secure a business credit card to fund your startup \u2013 although the interest rates and fees you pay may be very high. The application process for these types of card is usually fast, streamlined and does away with piles of paperwork &#8211; in many cases you won\u2019t even need a formal business structure to apply. Business credit cards are also great for re-building your credit if you pay off the balance every month. No added collateral is usually required.<\/span><\/p><h3><b>External investors<\/b><\/h3><p><span style=\"font-weight: 400;\">If you\u2019re seeking outside investment for your new business, there are networks of venture capitalists and angel investors readily available online. Some are solely focused on supporting startups and new businesses.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Bringing in external investment can give you the cash you need to get your idea off the ground, and it may also deliver a unique and extra set of skills and contacts that can help your organization grow even faster. However, be aware that investors will usually want a piece of the action in exchange for their money. This means you give up a share of your ownership and it may loosen your overall control of the business. Some investors may also want higher <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/dividend\/\">dividends<\/a> or royalty payments as well as their share of equity. Also note that venture capitalists and angel investors can be very picky about the businesses they choose to back. You could spend many months pursuing one lead after another before you find the right match.\u00a0<\/span><\/p><h3><b>Grants<\/b><\/h3><p><a href=\"https:\/\/swoopfunding.com\/us\/business-grants\/\"><span style=\"font-weight: 400;\">Business grants<\/span><\/a><span style=\"font-weight: 400;\"> are another funding option for startups and young organizations. Unlike business loans, the major advantage of this type of financing is that you don\u2019t need to repay the money. However, the downside is that can be tough to secure a grant. They are often restricted to specific locations, industries or causes, making it more difficult to qualify.<\/span><\/p><p><b>Five places to find small business grants:<\/b><\/p><ul><li><a href=\"https:\/\/www.grants.gov\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Grants.gov<\/span><\/a><\/li><li><a href=\"https:\/\/www.rd.usda.gov\/programs-services\/business-programs\/rural-business-development-grants\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Rural business development grants<\/span><\/a><\/li><li><a href=\"https:\/\/sfgrants.eda.gov\/s\/funding-program\/a2j3d00000010edAAA\/2023-build-to-scale-program\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Build to scale program<\/span><\/a><\/li><li><a href=\"https:\/\/www.sba.gov\/funding-programs\/grants\/state-trade-expansion-program-step\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">State trade extension program<\/span><\/a><\/li><li aria-level=\"1\"><a href=\"https:\/\/helloalice.com\/grants\/sbgf\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Hello Alice small business grants fund<\/span><\/a><\/li><\/ul><h3><b>Crowdfunding<\/b><\/h3><p><span style=\"font-weight: 400;\">Available via various online platforms, crowdfunding can bring in large sums if your presentation hits the right spot. Although you will need to be creative to raise big money in small donations from hundreds or even thousands of donors, you do not need to repay the cash if you spend it where you said you would. An eye-catching idea and a powerful pitch is essential to succeed with this funding option.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a819661 question elementor-widget elementor-widget-heading\" data-id=\"a819661\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Get started with Swoop's business funding platform<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-39709e3 answer elementor-widget elementor-widget-text-editor\" data-id=\"39709e3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">No matter if you\u2019re seeking your first startup loan or you\u2019re a seasoned borrower, working with business finance experts can make all the difference when applying for your funding. Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality startup loans from a choice of lenders. Give your big idea the financial boost it needs. <\/span><a href=\"http:\/\/us.swoopfunding.ca\/stage\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Register with Swoop today<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-95697e9 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"95697e9\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/us.swoopfunding.ca\/stage\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Apply now<\/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<\/div>\n\t\t","protected":false},"author":26,"featured_media":0,"parent":0,"template":"","start-a-business-sectors":[346],"class_list":["post-28658","start-a-business","type-start-a-business","status-publish","hentry","start-a-business-sectors-starting-a-business"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>Almost 5.5million new businesses were launched in the US 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.\u00a0Many 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 organizations get up and running. More readily available from online lenders than traditional banks and credit unions, these specialized&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Chris Godfrey","url":"https:\/\/swoopfunding.com\/us\/author\/chris-godfrey\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/start-a-business\/28658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/start-a-business"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/start-a-business"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/26"}],"version-history":[{"count":26,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/start-a-business\/28658\/revisions"}],"predecessor-version":[{"id":43277,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/start-a-business\/28658\/revisions\/43277"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=28658"}],"wp:term":[{"taxonomy":"start-a-business-sectors","embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/start-a-business-sectors?post=28658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}