Showing posts from December, 2013

What Does It Take to Get a Startup Business Loan?

Originally @ Early Growth Financial Services

Starting your own business is tough. Whether launching the next big venture-backed startup or a corner store in your neighborhood, running a company requires entrepreneurs to take risks and make sacrifices. But those sacrifices shouldn’t include giving up outside funding and just trying to make do.

Yet more and more, small business owners are finding themselves coming up short when they look for funds to build their ideas into a reality. Small businesses looking for modest loans are out of luck—and normally have to wait months to even find out they’re declined. For many banks, what it comes down to is that $75,000 loans just don’t generate enough interest revenue to make business sense. The average bank SBA loan in 2012 was $337,000—more appropriate for a well-established business with lots of employees than an entrepreneur looking to get his project off the ground.

Even given the tight credit environment, there are steps that startup busin…