There’s many different suggestions out there for building a business from scratch, and while some even have different suggestions for getting your own working capital using savings, nearly all businesses at some point are going to need financing in the form of a loan or advance. One of the usual questions that comes up for small business owners is how long they have to wait until they should consider applying for a loan. It is true that businesses who have been open for a year or more and don’t face closing usually stand a better chance of getting a loan, but there are some options for brand new business loans through the Small Business Administration. If you have a Colorado business you think is ready for a loan, you may be able to get SBA loans Greeley CO.
Drawing Up A Business Plan For The Loan
Bank loan officers do want to see a business plan, but not the same way investors do. They want to see a plan that focuses less on all the future growth and big return projections and instead want to see results of past financial track records and how you manage current cash flow and payments. They will likely want to look closely at your statements and your accounting documents, and your loan may need business equipment or other physical assets used to secure it if your credit isn’t great or your business is very new.
Get In Touch With The SBA
The SBA is a lot more than just a government agency that regulates the financing and startup registration for small businesses. They actually have a lot of educational resources out there to equip new business owners with startup knowledge and even seminars that can get entrepreneurs pointed in the right direction if you go to the SBA website. It’s also good to become familiar with their loan programs while you’re there which range anywhere from $500 to $5 million in amount and list the items you need to qualify for them. If you’re new to all the legal processes and tax and accounting regulations that small businesses have to meet, the SBA’s website even has a course listing for that. With all the resources they bring, the SBA is a small business owner’s best friend and is likely their best bet at getting a favorable loan term when they need capital.
In conclusion, getting a loan of any amount to jumpstart your business with can take time, but in the meantime there are always ways you can keep it going and prove that you’ll manage risks appropriately. One thing to remember is that while growth is always the goal, it never hurts to start very small such as running it out of your home, making use of inexpensive equipment to start and keeping it running on a budget. Then as you make successful sales, go to the SBA to see which loans work best for you.