Most Commonly Used Options To Get Funding To Start Your Brand New Business.
Small Business Loan Options
ROBS – Its A rollover for business startups.Lets you use funds from retirement account without getting penalties for early withdrawal.
- Pros- Easy way to get funding for new business.
- Cons- 5000.00 Set Up Fee 1500.00 Yearly In Monitoring Fees.With help from your brokerage firm or accountant,they can show you a way to use your money from your 401K.
A C Corporation must be set up,and owner of the business must be an employee.For information contact your brokerage firm.
HELOC – Which is a home equity line of credit.Easy to get,and very low interest rates.Can take money all out at once or as needed and only paying interest on whats drawn.
- Fees 2-5% closing costs, 3-7% interest on amount borrowed.To qualify one must own home and have at least 25% equity.
- If money is going to be drawn over time,this saves interest since you are only paying on what you need. Good Credit is needed as well as equity.
- If all the money is taken at once,than interest will be paid on the full amount.
Best way to get more information on a home equity loan,is to call the lender that is holding your mortgage.
Personal Loan – This is the most popular option which is fast and based on personal income,and personal credit.
- Income – Must be 50,000 a year-last 2 years tax returns needed
- Credit- Must be 680+ no recent bankruptcies,no numerous inquires,no derogatories.
- Term Loan–5-7 years
- Interest Rate –3.9%– 14.99%
- Loan Amount 30,000 –300,000
- Fixed Monthly Payments
- No Upfront Fees
- Pre Approval -24 Hours
- Funding – 3- 7 Days
Use Of Personal Credit Cards – Easy,fast and credit line available immediately for use as needed.
- Only pay interest on balance monthly. Many card companies offer 0% Introductory Rates
- Many card companies offer rewards and cash back incentives.
- Depending on your credit scores is what determines the interest rates.If credit is not so good than interest on payments and the payments itself will be high.
NOTE; If credit cards are not used responsibly, one can get into serious debt, which could get them in trouble and not able to continue making payments on time. Therefore putting the credit in danger. Check on the internet for the best credit card offers out there in the marketplace.
SBA LOAN – For established businesses must easier to get approved for than for a startup business.
- One of the things that make an SBA Loan difficult to achieve is that the new business owner must have 680 or better credit.
- Business owner may have to provide some collateral,usually real estate.
- SBA generally would like to see 30% or more down payment from the business owner
- They want to see proof of experience and or management experience in the same business.
- SBA Loans offer very low interest rates and longer term to payback like 10 years.
- SBA does not lend the money,they only guarantee the loan making it less risky for the lenders to offer the product.
- The lender will ask for a business plan,along with filling out massive paperwork.
- This is a long process and can take months before the business owner gets an answer.
- Most people get denied for an SBA Startup Loan because lenders view it to be very risky and the odds of a new business succeeding are very low.
if you’re looking for working capital to start a new business give us a call today at 1-407-269-8286 Mon-Sat- 8am-7pm American Small Business Loans Inc
SMALL BUSINESS LOANS
UP TO $500,000
FREE, NO OBLIGATION QUOTE
[contact-form-7 id=”2254″ title=”Contact page_copy”]