If you have a lot of money in the bank to start up a new business, you can consider yourself lucky, however, this is not the case with many entrepreneurs, who have the idea in mind, but they do not have the capital required to start a business. This becomes even more difficult when most of these brand-new entrepreneurs are turned down to get a business loan or SME loan.
It is very difficult to get a business loan from those traditional banks, especially if you do not have a good credit history or if your business is only a few years old. However, if you apply for an SME business loan, chances are that you will be able to get one for your new business. Before you go that route, you need to know more about different ways of getting an SME Business loan.
Let us have a look at 5 different way of getting an SME business loan:
If you want to kick-start your small or medium sized business and need some financial support in the form of SME loan, you can go to any of the traditional brick-and-mortar banks. These banks are still considered as the best option to get SME loans on soft terms and conditions.
- Credit Unions
Since credit unions are non-profit entities and since they do not have big overheads, they tend to offer competitive and sometimes even lower interest rates on the SME loans than the traditional banks.
- Small Business Administration
SBA or Small Business Administration provides the government backing to partner banks and credit unions so that they feel secure lending SME loans to riskier businesses. You can take advantage of such loan programs if you are starting a new venture.
- Online Lenders
Small and medium sized business owners can also avail SME loans from various online lending sites. Some of these online lenders lend the money directly while others use peer-to-peer models of financing.
- Credit Cards
In case you do not get any positive reply from any of the above sources, you can always apply for various credit cards and arrange the money that you need to keep your business in business.