Credit for Small Business. How to Find Credit for SmallBusiness Owners and their Businesses. If you are ready to start or grow your smallbusiness, you don’t have to do it alone. There are several sources of loans for these businesses that can help you in your challenge. But, before applying for credit it is important to prepare a business plan. This plan makes it easy for you to get approval. A plan includes; your goals (what you want to get), strategies (how are you going to do it) and your actions or the specific steps you are going to follow.
The SmallBusiness Administration or SBA can help you with your plan. Many universities also offer entrepreneurship classes that include lessons for preparing business plans.
Sites where you can apply for credit for any smallbusiness;
- Commercial banks and cooperative unions – these maintain credit programs for small (micro) businesses. By simply asking about the micro-loan program, you can learn about its requirements. As part of the package to apply for a business loan, you must prepare several documents. These should include the minimum; your credit history, list of business assets and liabilities, cash flows, collateral / assets collateral, references, a business plan and loan payment sources.
- Nonprofit organizations – the main nonprofit organization where you can request help for a smallbusiness is the SBA or SmallBusiness Administration. These loans are guaranteed by the federal government and are granted in various amounts by banks authorized by the SBA. This link contains banks and private organizations authorized to make loans under this program.
Types of loans – the SBA program offers several types of credit for small businesses. These are classified according to the use or need of your business. SBA 7 (a) Loans, CDC / 504 Loans, Microloans and disaster assistance loans. Your bank can help you with the right selection for your business.
- Government organizations for smallbusiness development – These agencies in each state offer technical, administrative, training and financial assistance to entrepreneurs and their businesses. The agencies are physically housed in universities and in the state economic development agencies. Also, there are organizations to help women with small businesses .
Corporation grants for Small Business
This type of help is not from loans, but grants or free money in small amounts for business. Organizations are for-profit corporations that also offer funds for philanthropic purposes. Here are three of these.
- Fedex Grants – this is a competition that offers a first prize of $25,000, a second prize of $15,000 and 8 prizes of $7,500. The application must be completed in March of the same year.
- National Association for Self-Employed Workers – to qualify you must be a member of this organization (NASE.org)
- Lending Tree – this financial company has a competition and the winner receives $50,000 in subsidies for their smallbusiness.
The short and long term credit products you can request
Although there are loans and grants for small businesses, the application process can sometimes be exhausting. If you need to obtain funds for your biz, you can also request a card or credit line. The use of these sources is suitable for short-term financial needs.
Credit cards – some of the best business cards include; Chase Ink Business Cash SM Credit Card, The Business Platinum® Card from American Express OPEN and Capital One® Spark® Cash for Business.
Business line of credit – These loans are for short-term use and repayment. Some of the companies that offer credit lines include; Kabbage, Fundbox and Ondeck.
Considerations before accepting a business credit card or line: The interest rate, terms to pay and whether or not there is a direct inquiry to your personal credit history.