Do you need capital to start or expand your business? If you answered yes, then you’ve come to the right place. In fact, you’re only minutes away from applying for an SBA start up or expansion loan that could change the direction of your business forever.
But first, let’s take a look at whether applying for debt is the right decision for your business.
SBA Loans For Start Ups
Staring a business isn’t easy. There are so many decisions to be made. One of the most important decision is whether to fund your start up from savings, real estate equity or some other source of funds.
If you’re having trouble making this decision, let me help. I am going to pose three important questions about your business that I have discovered must be answered prior to taking on debt based on over a decade working with successful business owners.
- Does my business require equipment?
- Does my business require a physical location?
- Does my business require employees?
If you answered yes to anyone of these questions and you don’t currently have the capital necessary to fully fund these costs, and you’re dead set on starting your business, then yes you need capital to fund your start up.
How much you need is determined by the cost of your equipment, lease or number of employees necessary to start your business. If you don’t know this information yet, don’t worry we can help with that too.
SBA Loan For Business Expansions
The good news is your business is growing. But what now? Do you fund your growth from existing working capital or seek capital from an outside source?
Below are three important questions to help you determine whether you should take on debt or not.
- Can I fund my growth from existing working capital
- Can I afford to carry debt in the near term
- Can I leverage debt to increase revenue and profitability
How did you answer these questions? If you can afford to fund your growth from reserves, then that may be the best route. Not placing the burden of interest expense on your business is a good thing.
However, having sufficient reserves to service new debt means your company is thriving which is the best time apply for a loan. The old adage is that banks will only supply financing when the business doesn’t need it. I must say, there is some truth to that.
Further, if you’ve demonstrated through careful consideration that you are able to leverage debt to increase revenue and profitability, then you are well positioned to apply for an SBA loan to fund your growth.
Before completing a short application that will help us determine your eligibility and qualifications we need to discuss the banks criteria.
Banks lend money, even with an SBA guarantee to individuals and businesses that meet two fundamental criteria; possessing sufficient cash flow and collateral.
Therefore, in order to structure your loan application for success it is important that before applying you understand that you should be able to demonstrate a secondary source of repayment from an outside source of cash flow which can be from a spouse or partner with W2 income, passive real estate investments or even another business investment that supplies cash flow.
Collateral is another consideration. Banks like new equipment as collateral, furniture and fixtures and other attachments not so much.
That’s because furniture and fixtures do not have much resale value in a liquidation scenario, or in other words, if your business fails and you default on the loan.
Application Submission Form
Now you’re ready to complete our simple online application. Once submitted, you will receive a follow up call in less than 24 hours. In many cases it will be the same business day.
From there it can take less than one week to be notified whether your loan application has been approved.
Don’t just sit there staring at the screen, fill out the form!