GOT A DREAM? LET’S FUND IT TOGETHER

Every successful business owner starts somewhere. Those with entrepreneurial dreams and ambition are often not satisfied working for someone else and want to venture on their own and become their own boss. Though it’s not always easy to run a business, many business owners will say that the hardest thing was starting out.

To start your own business, you’ll of course need some sort of idea, and the motivation to realize that idea. Then you’ll need to get organized with your finances, build a business plan and, of course, get some funding.

These days small businesses can be funded in a number of ways. Many business owners find investors through networking or online crowdfunding. Other times, business owners save up money and front the costs themselves. However, startup costs can be quite high, especially for certain industries. In fact, about 2/3 of business owners will need around $10,000 to start their business. Many business owners decided to seek a lender’s help to cover these costs. If you cannot fund the entire business yourself, a loan may be your best bet.

Opening a business can require some steep startup costs. That’s why you may need a business start up loan.

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When opening or expanding a business, you’ll typically need to invest a substantial sum of money. Often, this phase of business ownership can feel like a huge money pit, since it can take some time (and a lot of work) to start profiting. When it comes to any small business: restaurant, physical therapist clinic, plumbing company, small store, you are going to have to pay some startup costs. These startup costs are used to pay rent, wholesalers, payroll, insurance, contractors, construction costs and so forth. However, once your doors are open and your business starts booming, it will all be worth it.

Many entrepreneurs and small business owners take out loans to help them cover these costs. These startup funding costs can range anywhere from a few hundred dollars to a few hundred thousand, depending on the type of business you plan to open.

• In order to receive a loan to start your business, you are going to need a good credit score. The higher the better. The minimum credit score necessary for a startup business loan is around 640. In order to have a business credit score, you’ll have had to be open for at least 6 months.

• You should also be able to show evidence of previous successful business ventures. Lenders are much more likely to approve your loan if you can show them that you have experience with starting a successful and profitable business.

• Some form of collateral (cash, securities, bonds, or tangible assets)

• History of repaying other loans. Lenders want to see that you are a responsible and reliable loan recipient, and are not in massive debt. This is typically reflected in your credit score and serves as evidence of your financial responsibility.

As a working professional, there are ways to acquire funding to grow your business. If you are a doctor, architect, physical therapist or professional who wants to open or expand their practice, you may qualify for a professional business loan. For those who work in medicine, inquire about a medical practice loan. Similar to a business startup loan, you can use this funding to pay for your office space, branding, or any other start up business costs you may have.

Aside from standard business loans there are also personal loans available that can be used for your business. If you need working capital for your business, or additional funding for your business, you can also try applying for a personal loan. Some people may recommend that you stay away from this option, as personal loans tend to have higher rates than business loans. However, personal loans are generally easier to qualify for, as they often don’t require collateral.