Finding Small Business Loan Providers

by : Bei Maniago



A growing business could mean plenty of costs. If you are on a tight budget, chances are you will need to find a provider of small business loan and financing. But what is the best option for you?

To find a small business loan provider you need to study your options thoroughly. What is right for some other business may not be right for yours.

Grants
These grants are good sources of small business loan, because they are more like free money. However, convincing those in charge of approving your applications for a grant is very hard. But if you are lucky enough to be awarded one, they can fund your specific business tasks such as training, exporting or making new products but not entirely your whole business operations. You can search for business finance grant-giving organizations. Government groups and the European Union give money to well-respected and deserving companies. So be prepared to do some legwork for your loan.

Business Angels
Business Angels are small business loan providers who are wealthy entrepreneurs themselves or individuals who are looking to invest in companies. They usually buy a small percentage of your business and expect that this share will grow as your business expands.

Consider bargaining hard for your money. They are skilled and experienced negotiators and will get a large asset of your business at a low cost. Business angels and venture capital firms expect you to disclose everything and even request access to your financial records in return for business grants. They will even ask about your trading history, your fixed assets and who your senior staff members are, before they decide if they will invest or not.

The process of getting small business loan and grants from a business angel is really hard so you must be committed to do this before deciding to take the plunge.

Floating on AIM or OFEX
Floating on a stock market is another source of small business loan but it is a complicated process. Your business must be given permission by your partners and you will have to go around the country, looking for organizations to back your business.

Your advisers will recommend that you come up with a great business plan to make your business appealing to small business loan providers, and once your loan is being approved, you will have a qualified registrar - also chosen by your advisers -who will start to document the investments.
New service called ShareMark, helps small businesses in getting sourcing funding. They focus on providing financial assistance to smaller businesses and have less rules and regulations.

Obtaining money by borrowing for small business loan is the most common method used by start-up businesses and also bank finance might be the right option for your business. Small business loans come in a range of interest rates, guarantees and repayment terms. You can borrow a small business loan to pay for fixed assets like your equipment or for the whole set up process.