Lombard, IL -- (SBWIRE) -- 04/28/2014 -- Starting a business is never easy. After identifying the business goals and visions, knowing the target customers and having an ideal marketing strategy, knowing your competitors and strategies on how to beat them, what’s next? The next crucial thing to consider is how to get funding for the business. How much money is needed? How much profit potential does the business have? What are the financial projections?
Knowing how much money is needed to start the business until reaching the break-even point and where to get different sources of funding would definitely help the business off to a running start.
When starting a business, there are a few important points that should be considered:
-The amount of money needed to pilot the business
-The amount of money the business owner already has and that will be used to start the business
-The assets the business owner already has to start the business
-Investors that will help in starting the business
-Personal credit rating or lines of credit available
After identifying all the answers to the questions above, the next thing to do is to think of where to get enough funding. There are different sources of funding such as equity investment, personal savings, inheritances, government funding to some extent, and commercial loans. Past the start-up phase and in eventually realizing the revenue being generated from the business, the best option that is a start-up business loan.
There are two types of a start-up business loan. One is the secured business credit in which collateral is required. And the other one is the unsecured business credit where no collateral is required.
Secured business loans work well for some businesses. But there are some risks to it. Almost all banks require small and start-up businesses to offer a collateral for a loan. Taking a loan using personal assets as collateral presents the risk of losing the assets in the event that one defaults on the loan.
Unsecured business loans, on the other hand, seems to be more attractive because there is no collateral required. There is no need to put up an asset such as real estate for the borrower to get the needed money for the business. The bank will offer a credit that is based on the borrower’s credit history and the agreement to make payments based on the credit institution’s terms and conditions. However, the borrower is likely to get a higher interest rate with the unsecured business credit.
How can one qualify for an unsecured business credit?
When doing so, the first step that should be considered is the credit institution where the loan will be secured from. It is important to choose the one which can provide a lower interest rate and with how much the start-up business needs.
Midwest Corporate Credit in Lombard, Illinois, is an example of an institution that can help business start-up owners find an unsecured business credit from a potential lender allowing them to receive several times the amount of loan that any borrower would get from a typical bank. Depending on the borrower’s credit status, Midwest Corporate Credit may pre-qualify for $50,000-$250,000 in unsecured business credit. If one does not immediately qualify, their experts will coach the borrower on increasing their personal and business credit worthiness, as well as provide reputable third party resources and services that can assist in becoming a qualified candidate for their products. When the business has been pre-qualified for $50,000 or more in unsecured business credit, their experts will guide the borrower through the application process, keeping them updated and helping them resolve any approval conditions that lenders may have. Within 15-30 days of full application, the business will receive $50,000-$250,000 in unsecured capital.
Once a loan has been secured, it is equally important that the borrower continually develop a good impression with the lender to increase the chances of securing additional loans in the long run. This is possible by having a strong company management and staff, steady business growth potential, reliable projected cash flow, and of course, making the loan and interest payments on time, and never missing a payment.
About Midwest Corporate Credit
Midwest Corporate Credit works with lenders and business owners to create an optimal relationship. They match borrowers with the lenders based on the business size, location, industry, age, and other key factors, allowing them to receive several times the amount of unsecured business credit that anyone would get from a typical bank.