I want to believe you are new in the business world and you need start up business loans. Of course, the first thing that will come to your mind is going to the bank. However, that is not always the case.
There are now some non-bank institutions that are offering start up business loans. When we say, “non-bank financial entities” we are talking about cooperatives and lending firms that do not operate as commercial or thrift/savings bank.
The internet is one of the best tools to use in searching for firms that are offering start up business loans with the lowest rates. Just type in the search bar the phrase “start up business loans”, then hundreds and hundreds of links will appear with that phrase.
Nonetheless, going to or contacting a financial advisor would be a big help in finding the best start up business loans firms that are trustworthy. There are plenty of advisors on start up business information in the cities, and of course, online that are offering their services for a minimal fee or no cost at all.
At first, getting start up business loans could be difficult since there are still doubts on the paying capabilities of those who are considered neophyte in business. Commercial and even non-commercial financial institutions are now very cautious about their return of investments since the ‘goodness’ or the ‘badness’ of debts predetermine the future of the company.
Recalling the experience of Fannie Mae and Freddie Mac, the cause of its collapse is that it has incurred more bad loans than the good ones. Meaning, there are more debts left unpaid than the loans that are totally paid. The Lehman Brothers, for example, had their last straw when they found out that their profits are falling; while their outstanding debts or obligations to their business partners was going up. This pushed them to declare bankruptcy and asked the US Government to bail them out.
Financial experts admit that giving a loan to an inexperienced businessman or businesswoman is like darting with your eyes blindfolded. As it was mentioned before, loaning institutions are keen to their profits, as well as with their losses. Profits must go up and the debts or other obligations must go down.
Of course, the financial communities are still very much eager to lend a helping hand to those people who want to sink their teeth in creating businesses. Since the economy is driven by production and consumption, there is a need to increase the producers to be able to meet the consumption needs of the society. Nonetheless, there is also the need to “create” the demand in order for the wheel of the economy to keep on going. But that is another story to talk about.
Now let’s go back to the topic of where to get your precious start up business loans: In order to get a good one is to present yourself “good” also. What does it mean? You can begin by showing how good you are in taking care of your personal finances.