“Want Startup Business Loan And Why Funding Works For New Businesses?”

Before you keep reading to compare your options below simply click video play button to watch…

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Yes is short answer, the long story is funding works because we know exactly where you are right now.

Let’s face it…

Speaking from one business owner to another, we all know you’re actually really good at what you do.

Right now I am going to share with you what just might be most powerful…

Most predictable and repeatable path to increasing your revenue.

In fact, the coming days, weeks and months…

You can get results with fewer headaches and frustrations.

That’s a big claim yet it’s true…

Yes the right business funding is structured with proven, tested process for discovering how to make it happen…

You’ll see this is how to get a startup business loan.

Startup business loans are one of the most popular business loan requests we see these days.

So how hard is it to get lenders to back you?

One of the biggest challenges startups face is lack of trading history…

Especially the inability to show cash flow coming back into the business to make repayments on loans.

If you can understand from a lenders point of view the risk…

Coupled with failure rates of business in general…

It becomes easy to understand how they hesitant to give out large sums of money.

Especially to everyone who came through the door looking to start a business.

Lenders are inherently risk averse.

You need to prove you can either repay debt through cash flow of the business.

Or you have existing assets as security in the event you fail to make good on loan repayments.

Luckily there are still some options available for a startup.

Especially when you’re trying to find initial cash to make it work.

Ok, let’s quickly take a closer look at seven simple options…

Credit cards

Yes, the good old credit card.

We’ve had borrowers come through requesting a small loan to pay for company registrations, website setup etc.

You should think about putting these expenses on your personal credit card.

Then once you’ve registered your company/business you can claim back out of the business.

Personal loans – up to $30,000

One of the easiest way to get hold of a larger some of money is to apply for personal loan from your bank or alternative lender.

You can then treat this as a loan to the business and repay it later once the business has income coming in.

We recommend these types in the initial stages of setup…

Unless you have some strong equity in a home with business plan showing history of experience within industry…

It’s unlikely you’ll get a “business loan” from a traditional bank.

Crowd funding

If you haven’t heard of this type of funding, don’t worry, as it’s fairly easy to get your head around.

Essentially there are websites such as www.kickstarter.com that you post your business idea to and ask for pledges from the “crowd” or friends and family.

Again this takes setup and marketing to maximize your goals however anything is worth a go when you’re trying to get funds.

Micro business loans – up to $20,000

There are a number of micro business lenders that approve loans up to $20,000 fairly quickly.

You will need to demonstrate you own one asset such as a car.

Better still a house and have clean credit with ability to generate income above $500.00 per week.

These loans are more expensive than personal loans from a traditional bank.

However are fairly hassle free if you need a fast turnaround.

Property assets – up to 2 Million

If you starting out and have available equity in a residential or commercial property then your options widen again.

To cut out any confusion, lenders only loan up to a maximum of 80% of the property value.

You may get lucky with some lenders if you’ve a great story or you’re starting a new business…

And already can show forward orders for products or services to back up the loan amount over their normal guidelines.

Equipment finance – up to $30,000

When it comes to purchasing new equipment for a startup…

There a fair few options available up to $30,000, even if you’ve only had your ABN registered for a few days.

As long as your credit file is clean.

And it makes sense to the lender why you need equipment…

You’ll get an approval because they can cover some risk via residual value of equipment you’re buying.

And in the event you fail to make good on the repayments.

Essentially funds can only be borrowed to buy equipment, so don’t expect to get any working capital like above options.

Above $30,000 most lenders want to see trading history.

The above is a guideline of options for funding a startup with debt as opposed to equity options.

The reality for most small business owners looking for funding it means equity is out of the question.

Unless you’ve created an innovativation or invented something new within your industry.

And to ensure you get the right options for new business…

Click here to get started with startup business loan