Which is easier to get a bank loan?
mypassions4life asked:
Is it easier for an existing business to get a loan versus a new business? Is the only way that a new company can get a loan from the bank is by using collateral or by getting a high percent on the loan?
Is it easier for an existing business to get a loan versus a new business? Is the only way that a new company can get a loan from the bank is by using collateral or by getting a high percent on the loan?
December 13, 2008
• Tags: Bank Loan, Collateral, Loan Business, New Business, New Company • Posted in: Credit
2 Responses to “Which is easier to get a bank loan?”
I used a company called Accion USA for my small business loan. It was for a new business and I didn’t have to give any collateral. Everything was done through fax and phone. I only needed $3000 and got it. Plus if you use them and are approved for your loan, they’ll give you and me $25 a piece. It worth it to check out. I can give you the info to contact them if you want it. Just email me through my profile.
An existing business with a decent credit history should be able to get a certain amount of loan.
A new business could not, by itself. You’d be unproven. To get a loan, you’d have to personally guarantee it, and that would mean that you yourself would have to have either the collateral or the credit history to justify the lending.
If you need under one million, look for “angels” in your area that specialize in funding small companies. Be prepared to fully justify your company, in terms of people, needs, marketing, and revenues for the first few years with a solid business plan.
Many banks have contacts with groups of retired executives that offer consulting help for free.
Good luck!