So you’re interested in starting a business. You’ve done the market research and have filled out all the necessary paperwork and tax forms to obtain your business licenses. The next logical step is to secure funding for your business.
After creating a comprehensive business plan you’re thinking about your funding options from a business loan to finding potential investors who believe in your companies’ vision as much as you do.
You also have the option of funding your new business with your money (savings, retirement, etc…)
This exciting next step is arguably the most important task you’ll ever do for your business and will ultimately be the deciding factor on whether your company sails or sinks. You might even feel a bit stressed about making this decision but rest assured this blog will explain all things small business funding in 2020 so you can scale your company and reach new heights with the confidence your business will explode.
Finance Your Start-Up in 2020: How Long Do I Have to Be in Business Before Funding?
As a best practice, most small businesses need to have been in business, open and running with all the correct tax forms and documentation for 1 year before sourcing a loan.
There is a multitude of companies and brokers who are eager to assist you in funding your business, providing that you have a full-proof business plan and can pay back everything you borrow.
Building business credit with a business credit card right after getting all of your licenses and forms completed with the IRS is the fastest and easiest way to build an excellent business credit history. This way, right after that 1 year in business comes up you’ll already have a track record of recording business expenses and building credit in the name of your company.
There are certain companies out there that allow you to secure a business loan after being in business for only 6 months.
Why Working with a Business Loan Broker is Smart
Working with a business loan broker takes away the headache associated with researching loan companies, financial institutions and dealing with the run around associated with finding the option that fits your small business the best.
Similar to how a real estate broker shops their clients around for financing a real estate loan Commercial Loan Brokers do the same task by researching, listening to their client’s individual needs and going to their wide network of professionals to source the best option for your business.
Here are a few of the most popular loans used when funding your start-up companies:
- Start-Up Equipment Financing
- Business Credit Cards
- SBA Loans
- Micro Loans
- Personal Business Loans
- Fundraising Initiatives
Remember, that you don’t have to fund your business solely by using a business loan. You can also source personal business credit and fundraising to take care of certain costs to fund your company.
To find out which of these options will best suit your needs and get your business off the ground running contact us at (858) 324-1951 so we can discuss propelling your business forward in 2020.
Keith McLaurin | Licensed Commercial Broker ID#01190109 / NMLS#1209195