According to the US Small Business Administration there are around 28.8 million small businesses and home businesses in the US – which accounts for more than 90% of all businesses. This shows that homes businesses are an essential part of the American economy, but life isn’t easy for those that are just starting out.
Research has found that nearly half of small businesses don’t survive for more than five years, and one reason for this is a lack of funding.
Thankfully home businesses have a few options if they need money; they can borrow emergency cash, or they can get a business loan to help establish themselves.
If you have a home business and you need funding, here is how to finance the next step in your home business.
Benefits Of A Business Loan
A small business loan is one of the most popular loan options for home business owners, as it can be used to turn a start-up plan into a profitable home business. Small business loans are normally offered by quality lenders, rather than banks, which means that it is easier to be approved for the loan. This is very useful for most new home business owners, as it can be very difficult to get a business loan from a bank.
Of course, it is essential to plan exactly how you want to spend the loan before you apply for it. This will increase your chance of being approved for the loan – after all, planning is an essential part of business success.
Applying For A Business Loan
It is fairly simple to apply for a small business loan; you just need to find a quality lender first. Once you have done this you will have to provide some information about your business, including the industry you work in, how much you earn per month, how much you want to lend and what your credit score is.
Once you have provided the information you can sit back and wait for approval. Sometimes you will receive approval within a week, but sometimes you may be asked to provide additional information.
One other loan option is a line of credit loan. This kind of loan can be used to protect your business from possible future emergencies, but this loan can only be offered by a bank so it is less likely that you will be approved.
There are lots of ways to finance the next step for your home business, whether you are just starting out or you are established and you are looking to expand. Just make sure to weigh up your options before you make a decision, as it is important to find the best financing option for you.