Finding a small business loan is not as hard as it looks, but it can be confusing.
A lot of small business owners think that their only options are a term loan and maybe a line of credit. Most business owners don’t know that there are actually a whole variety of business loan options. Gone are the days when if you wanted a small business loan, you met with your bank and hoped for the best.
Today, the alternative financing industry has created different loan options for you and your small business. The question is then, what’s the best option for you?
Have you ever shopped for a car?
Shopping for a car would have been a lot easier in 1910. Back then, you had one choice: the Ford Model T. Today, you have dozens of manufacturers making trucks, sedans, SUVs, crossovers, vans, minivans, sports cars and more.
But we’ve been around these different types of vehicles all of our lives: we know why one person might need a hefty Dodge pickup truck and the other would prefer a sporty two-door Mazda. For a first time entrepreneur, figuring out small business funding is like transporting a 1910s car buyer to present day and telling them to make a purchase. They'd probably have no idea where to start.
Just like purchasing a car, the trick to deciding on what kind of funding you need for your small business is to first determine your needs, then look for the type of loan that best fits those needs.
Start by asking yourself some questions.