There are many stories and cases where people had a great idea but could
not get the funding to start the business and then someone else found
the idea and made a fortune.
This country was build on small business and what they contribute to our
economy. Most of our employers' are small business entities and many of
these small business start ups needed capital and a small business loan
somewhere along there way to success.
The amounts of capital needed to run a small business depends on the
type of business and what their capital needs are. A manufacturing
company will need machines, building, labor, supplies and materials so
they may need more capital than lets say a service type of business like
a travel agent.
Many of the small business loans that are made today come from local
banks and financial institutions. Why? Well, the job of a local bank is
to help their local area grow and if you have any type of collateral or
support, the chances are good that your local bank may be willing to
help you in some type of way or manner.
The banks are not in the business of loaning money without collateral,
so, be prepared to offer something so they can feel comfortable with the
idea they will get their money back.
Remember that not all business ideas work and in fact over 90% of all
new business ideas do not make it because of lack of sufficient capital.
Most of the small business ideas and startups have good ideas but lack
the working capital that they need to make it during the first year or
two until they get their products out and become well know.
Small Business Loans are also available through local banks and
financial institutions but with these types of loans the local bank is
guaranteed a large percentage of the loan will be guaranteed by the
government so the bank is much happier to make a loan when they know
that a large part of it will be repaid if you fail.
These types of small business loans require a business plan,
applications and patience. Nothing is easy when it comes to getting
money for a business and especially when you are dealing with banks or
the SBA. Be prepared to jump through hoops to get it done, but, they are
a viable way to get money and make your dream happen.
Small Business loans have helped all types of small business owner's get
the start that they needed to succeed. Our society is geared to help the
small guy and if you are a minority, you may find that finding a small
business loan or capital could be easier because there are many
different programs, grants and credit facilities that will cater to the
minority business owners over the larger companies. Check with your
local banks to see what they offer.