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As the name suggests, a small business start up loan is money used to begin a new business. While the traditional place to go for one of these loans is to a bank or other financial institution, there are other options you can consider for a small business start up loan.
The following are three common methods of start-up funding that won’t necessarily involve banks:
An SBA loan is a small business start up loan that is backed by the Small Business Administration. SBA does not provide these loans; rather, they are the guarantor of the loan. This means, in case of default, SBA subsidizes the provider. This makes the lending opportunity more attractive to a lender, but it also makes the qualifications more stringent than some other methods of funding.
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