Loan Options For Your Small Business

Becoming a business owner is a very exciting and bold step. With a new business comes many options. From location to staffing, there are many components to weigh and consider. One of the most important of these is funding. While obtaining financing can seem like a frightening process, it is important you realize how many options you do have for funding your small business.

The following are some of the most common options for small business financing:

  • Micro loan: These small loans are for business start-ups. They are typically $35,000 and under in amount. These loans can be easier to obtain than traditional bank loans depending on your proximity to a local lender. Sometimes the applicant must go through training and business planning education before obtaining the loan.
  • Franchise financing: If you are opening a franchise you may be able to obtain a start-up loan from the overall franchise company. Also, if the franchise company does not help you financially themselves they can help you obtain a loan from a bank with a pre-established relationship with the company.
  • Development Financing: This form of funding provides your business with long-term, fixed rate financing for your major fixed assets, including land and buildings. This applies to small business ventures in developing communities.
  • Import and Export loans: These are loans available for small businesses that have been operating for at least a year which are facing difficulty in obtaining reasonable financing. In this program lenders are encouraged to offer a loan to the small business with the guarantee that they will be repaid 90% of the loan amount (Which cannot exceed one million dollars).

If you are interested in obtaining any of the above loan and financing options for your business it is important you consider getting support from an experienced legal professional.

If you would like to know more about business start-up and financing options, visit the website of the Des Moines business formation lawyers of LaMarca & Landry, P.C. today.