Business Loans India | Commercial Loans | Small Business Loans | Business Overdraft | Loan For Entrepreneurs | Loan For Self Employed

Start up funding is critical to the success of any business. While some companies can be started on a shoestring budget, most require some investment by the owners. There are several kinds of start up funding available.

The most common is the entrepreneur using their own savings to get their business going. Or using cash from their credit cards or from a home equity loan. The benefit is that the entrepreneur doesn’t have to worry about investors looking over their shoulder or disappointing friends and family who may have provided the funds. The disadvantage is that if the business fails, the entrepreneur’s home may be at risk or savings lost.

A small business loan is often used to purchase equipment, supplies, and inventory to get the company going. If the entrepreneur has a good credit history and a relationship with a bank that does business loans, the money can often be obtained with a simple application form. Unfortunately most banks require that unless the loan is personally guaranteed the business has to have been operating profitably for at least two years. Banks look at two factors: the risk in not getting the principal paid back and whether the company can generate enough funds to pay the monthly interest. Bankers are not interested in the growth potential of the company.