The Small Business Administration (SBA) offers SBA startup business loans to help get new businesses off the ground. SBA loans are available for up to $5 million, with rates ranging from 7.75% to 10.25%, and terms of up to 10 years (25 years for real estate). You can apply through a traditional bank. One great…
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10 Venture Capital Advantages & Disadvantages
Like other startup funding options, venture capital advantages and disadvantages should be considered before funding. Venture capital offers funding to startups that are growing quickly in exchange for equity. It also eliminates debt payments and provides founders with advice and guidance. These are only some of the pros and cons of venture capital to consider….
Venture Capital: Definition, What It Is & Who It’s Right For
Venture capital focuses on funding startups with high growth potential in exchange for equity in the company. It’s a good option for startups needing $100,000 to over $25 million in funding to scale. To apply, you must find the right venture capital firm, pitch your company, and pass its due diligence process. What Is Venture…
Angel Investors: What They Are & Who They’re Right For
Angel investors are wealthy individuals who fund early stage startups with their own capital. They do so for convertible debt or equity ownership. They also mentor, advise, and make introductions that benefit the business. Angel investment is best for early stage startups with traction after raising funding from friends and family. What Is an Angel…
Personal Loans for Business: Definition, Cost & Providers
A personal loan for business allows you to borrow funds based on your personal financial condition and creditworthiness, making them a good fit for startup businesses. Personal business loans can include unsecured loans, home equity loans, and credit cards. Interest rates and repayment terms for personal loans vary based on loan type. can help you…
10 Pros and Cons of Angel Investors
An angel investor is a wealthy individual that invests money in startups. Founders that are past the idea stage with a product and some early traction are best suited for angel funding. The availability of angel investment is a key advantage for startups, while the cost of equity is its largest drawback. Most angel investors…
Putting Personal Money Into a Business in 7 Steps
Putting personal money into a business can help you overcome startup funding needs, but can also create unnecessary risk if done incorrectly. You need to make sure you properly account for the money on your business books so you accurately track the amount your business either owes you or how much ownership you have. The…
35 Best Crowdfunding Sites for Small Business
Small businesses can raise money with crowdfunding sites in exchange for rewards, future repayment, or equity in the company. Startups and more established companies can raise funds online while getting new customers. The best sites offer low fees and a large audience, and allow a variety of campaigns. Choosing the Right Crowdfunding Website There are…
Revenue-Based Financing: How a Revenue-Based Loan Works
Revenue-based financing (RBF) is funding offered by niche lenders in which payment amounts are based on a percentage of monthly business revenue. RBF works well for businesses with stable revenue streams but without the collateral needed for a traditional loan. The total cost for RBF can range from 1.35x – 3x the amount borrowed. With…
Best States for Female Entrepreneurs 2019—Definitive Ranking of All 50 States
While the old saying “It’s a man’s world” is passé, there’s still evidence men have the upper hand in business—particularly the startup world. Women-owned startups face significant social and economic challenges, resulting in a remarkable disparity between male and female-launched businesses. For example, a recent study by Biz2Credit revealed that women who apply for business…
How to Get SBA Startup Loans in 7 Steps
SBA startup loans are the same as traditional SBA 7a loans for existing businesses but are more difficult to qualify for because there is a higher risk of default. These loans are still possible but you’ll typically be required by SBA lenders to come up with 25 – 30% as a down payment as well…