Finding Business Loan Providers

By: Bei Maniago

Most businesses will need to get a business loan, whether it is for expansion or asset purchase. Knowing how to find a business loan provider is essential. Every business loan answers a specific need, objective and purpose. Here are tips on finding a good business loan provider.

1.Buy your local metropolitan newspaper and find providers' ads under "business loans", "mortgages", funding or financing. You are likely to find that business loan providers place small ads and others place large ads (with borders around them). Always check the Sunday paper because it has the most number of ads for the week.

2.Get a business or industry magazine. Look under "funds available", "money available" and other similar headings related to business loan providers.

3. Google it. Search for keywords "lending", "business loans" and "financing". When you run these searches limit your search to your state, city, or region. For example, if you want to find providers in UK, your search might look like "UK business loan providers" or "business lenders UK".

4.Contact national banks, national finance companies, local savings and loan associations.

5.Run classified ads in magazines and newspapers seeking for business loan providers or lenders.

6.Work with brokers who have contacts with business loan providers. Check overseas funding through local lenders.

7.Contact the Department of Financial Institution for tons of information on business loan providers registered in each state.

8.Call attorneys and accountants for references to lenders. Contact large companies making loans for their suppliers.

9.Work with non-profit business lenders. (see yellow-page)

It is also important to know what type of business loan you need. Here are some of the most popular loans in the market today.

?Term loans. For working capital, expansions, and acquisitions.
?Short Term Loans. For smaller amounts - less than$?100,000
?Equipment Financing - For general lines of credit.
?Lines of Credit. Lender will allow you to borrow money up to a certain amount per year.
?Credit Card Advances. It does not mean taking out cash through your business credit card, it is a loan based on your track record and your expected future business.

To get a compatible business loan provider for your business, know how much money you need and for what. There are still other sources for business lenders. Usually the first stop is the bank that handles your finances, but banks are pickier who they lend to. They may require collateral and proof of success of your business compared to other types of business loan providers. Brokers are good business loan sources for start ups. However, they do not lend money directly, instead they asses your situation and tell you which lender are most likely to accept you.

Some business loan providers will offer either secured or unsecured loans. Secured loans are those with collateral, unsecured are the ones typically offered by bank. On the other hand, independent financial organizations offer secured loans.

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