Many startup businesses fail. A key reason for failure is the lack of working and investment capital. How much capital do you need to start a business and where and how does the startup entrepreneur obtain funds to start a business?
Some entrepreneurs start businesses with capital from friends and family. This is frequently a good way to go because it is less costly than other sources of finance. Others finance startups by running up their credit cards. Another popular source of entrepreneurial financing are small business loans made by firms such as Kabage. Although the application process is relatively easy, these types of small business loans have high-interest rates and relatively short terms.
Another alternative source of financing is loans that are backed by the United States Small Business Administration (“SBA”). The remainder of this paper explains when and why an SBA-backed loan is right for you and what you need to qualify for an SBA-backed loan.
As with any government program, there are certain acronyms, abbreviations and “lingo.” This guide seeks to demystify the terminology. It is meant to be a guide for the layperson. If you have any questions, you can call us at 212-876-7476 (NYC) or 516-280-8363 (Long Island). We would be glad to help.
Check out how we can help you obtain adequate funding: