How Long Do You Need to Be in Business to Get a Small Business Loan?
Experts identify four stages in the lifecycle of a small business: inception, startup, success and takeoff. You can get a loan at every point in that timeline.
Here is a look at the small business loan sources available for your company.
You Have an Idea
At the inception stage, you want to develop your product and find where it fits in the marketplace. Your funding sources may be hit or miss and somewhat random. But money is essential if you want to turn your idea into reality.
Consider using personal savings and help from family and friends. Look for loans among angel investors, alternative lenders, banks, government agencies and venture capitalists.
You’re in Startup
In startup, you are rolling. You have products, services and, most importantly, customers. You are still in survival mode, with enough money to stay open but not enough to grow.
At this point, think in terms of product presales—selling your product before it is actually launches–to raise capital. You might want to take out an equity loan, sell some assets and use credit cards. Also look to banks and alternative lenders.
You’re Showing a Profit
At the success stage, you are making a profit. This is the time to invest in your employees and in team building. At this point, it is easy to get a loan. Sources include banks, the Small Business Administration, alternative lenders and venture capitalists.
You Are Ready to Grow
When you are in takeoff mode, you want money to take your business up a notch. You want to enter new markets, build a new factory or invest in expensive equipment. For a small business loan, seek help from banks, the Small Business Administration, venture capitalists and alternative lenders.
Check with Vantage today for a small business loan to help your company, whether you just starting out or ready to take it to the next level.