To start a business, you need start-up capital – money, equipment, materials, premises, and so on. Someone is trying to cope on their own, but not everyone has enough money. You can try your luck, write a business plan and try to get a loan to start a business from scratch.
What is the difference between a regular loan and a start up loan for business?
With standard lending, the money is received by a ready-made business and most often for a specific purpose: purchase of equipment, expansion of activities, etc.
It is easier for a working business to get a loan, since there is a history of work. The bank requests financial statements, tax returns, transcripts of accounting accounts and sees the full picture of the company’s work. It is not difficult to assess the risk of an investment, while more difficult is startup business loans.
A startup is a company at the beginning of a journey. It has practically no turnover, customers, suppliers, it only has a desire to expand. Therefore, the new business attracts loans to finance all areas of the business: supply of raw materials, search for sales channels, marketing, hiring employees, renting an office.
Which business is given a loan for a business plan?
The bank requests a business plan to assess the prospects of the project and its payback period. Based on the plan, the bank concludes whether the borrower can guarantee the return of loan funds and in what time frame. If the business is too risky or low-profit, the bank will refuse to lend, but there is a chance to convince it.
A business plan is required when implementing large projects. Here are the types of businesses that require financial planning:
- A startup – a loan for a business plan “from scratch” is given very reluctantly, since it is very difficult to evaluate the project itself without any history. It is possible to increase the chances of success if the company has a solid guarantor;
- Expansion of the existing business – in this case, the business plan should show how the attraction of new funds will affect the company’s activities;
- Investment loans – usually issued for the purchase of expensive equipment;
- Development of a new type of activity – one might say, this is a startup within the framework of an existing business.
How to apply for a start up loans for business online
On the website of the start up loans for business, you need to fill out the proposed application form.
You can choose the amount you want and the maturity date.
Wait for a decision on your application. This usually takes less than 2 minutes
Get paid. To do this, you do not need to go to the office – the entire amount will be credited to your bank card or specified account.
The online service of start up loans for business operates around the clock. Almost all applications are automatically approved by the regulator. In case of refusal, you can invite a co-borrower who will act as a guarantor of your solvency or will be able to share the debt burden with you.
Thus, online loans are now a profitable alternative to long-term consumer loans. They are easy to issue and repay without leaving home, income certificates or property pledges are not required, the money goes to the card immediately after approval.