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Never Underestimate the Importance of a Loan Provider When Starting Your Own Business

Plenty of people around the world have opted for being their own boss and ditched the typical nine-to-five office life. Having a business doesn’t always mean owning a big building and employing other workers, businesses come in all different shapes and sizes. You can set one up for just about anything – as long as you’re making money there’s a clear demand for your services.

One thing all businesses need, however, is funding, ensuring the business is able to meet its fiscal costs with a budgeting strategy.

Some people are lucky enough to work from home as a one-man company, but even these businesses need to secure funding. Purchasing materials and necessary equipment can be expensive and hold back productivity.

With a low-interest loan from a non-traditional lender, you’d be able to purchase this equipment and use the increase in revenue to offset the interest and loan repayments. Avoiding banks entirely and choosing an online startup lender means you’re more likely to get approved, missing payments is much less severe, and you’ll get quicker access to the money.

Some of the Best Startup Loan Providers

Kabbage: Based in Cincinnati, OH, Kabbage is a leading partner to small businesses across the world. It provides fast and flexible loans for all kinds of startups, with up to $200,000 approved for your company within minutes.

Kabbage allows its borrowers repayment schedules of up to 18 months and provides a secure platform for keeping your information safe. Borrowers can also seek a line of credit of up to $250,000 and need to have been in business for at least a year to be eligible.

StreetShares: As a veteran-owned company, you’re eligible for a loan with one of the best lenders available, StreetShares. Coming out of the military is hard enough but setting up your own business afterward is made unnecessarily difficult for veterans, though they make up around 10% of all businesses in the States. StreetShares loans come with low interest and have flexible repayment terms, depending on the loan you’ve been accepted for. Startups can also use StreetShares to purchase veteran business bonds. You can add up to $50k and receive as much as 5% interest.

Credibly: Credibly borrowers have the chance to take their operations even further. Customers can borrow as much as $400,000 and be approved within just a few minutes. The company offers various types of loans with flexible repayment terms of six to 24 months.

So far, Credibly has provided over one billion dollars worth of funding to small businesses and is prepared to work with startups better than the banks do. If you need to learn more about small business funding and how a loan can help, Credibly’s website is packed with resources for educating readers about responsible borrowing.

OnDeck: OnDeck has a huge global reach and has provided over 12 billion dollars to small businesses all over. Taking out a fixed-term loan could get you as much as $500,000 and borrowers can also get a line of credit up to $100,000.

Within one business day of approval, an OnDeck financial advisor will guide you through all the company’s available loans and help you work out a repayment plan that works for your company, not just OnDeck. The lender requires that you’ve been in business at least a year and have a minimum annual revenue of $100k.

Summary

Picking a startup loan responsibly can give your business the injection it needs to take off. Establishing a consistent level of quality early on is important to attracting new customers and retaining your old ones, so if you’re missing vital equipment or tools, then consider the various startup loan options available. Since banks don’t always make it easy for startups to secure funding, using these websites allows you to retain more financial freedom than a bank loan would and you’re more in control of the amount of interest you’re being charged.

Reliable comparison websites give you the opportunity to weigh up the best lending options available. Loan terms are made clear and the rates of interest, while some might be high, are made flexible by the number of decent lenders out there. Always be sure to borrow what you know your company can afford to pay back.

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