When you think of starting your own business, the first thing that may come up in your mind is about the capital. The capital is definitely crucial in starting a business. A big plan will do nothing without the capital.
If you come from a very wealthy family like Bruce Wayne in Batman the movies, then certainly the capital isn’t a big deal for you. But for most of us, it does matter. When one starts considering the new business, questions like: “how to get a small business loan?”, or “how to get a loan to start a business?” will linger on the head. Finding articles on similar theme such as “how easy is it to get a business loan” will probably is the daily activity before the action is executed.
But believe it or not, how to get a loan for business is not that hard. Nowadays, there many ways available to get capital for business if you are creative enough. You may check the tips below of how to get a business loan:
Some ways of how to get a business loan
Getting loan from bank with mortgage
Bank is the common place to come when someone needs money. The easiest way of how to get a business loan is here. Just come to the bank, propose the property you have as the mortgage, and get the money you need for your business. The bank provides some programs for small business men and business starter. The bank will charge small amount of interest and give flexible range of time for your business loan. Every bank has its own policy and terms for every loan program.
Getting loan from bank without mortgage
The second service provided by the bank is that you can have the loan without the mortgage. This is the very popular loan taken by business starters because they don’t have to give anything as the mortgage although this kind of loan charges higher rate of interest.
Also Read: 6 Smart Tips How to Write a Business Plan
Use your personal saving
Some people think that they don’t like to go to the bank for a loan due to the fact that it offers high rate of interest. If you are this type of people, then you can use your personal saving as your capital to start your new business. It is a save way actually to start the business since you don’t owe anyone or any institution; so, basically, it could be said that your risk is zero.
Selling your assets or properties
If you want to low your risk in doing a new business, and the question of how to get a business loan does bother you, you’d better check your ownership. If you still have properties like jewelries, a car or a motorbike, land, or any other investment forms, why don’t you sell one of them to start your business? Later on, when your business succeeds, you can buy your assets back. Even you can buy other better and more properties.
Pawn your properties
If you still love your properties and you don’t want to sell it, you still can get the money from it to start the business by pawning it. The money you get may less than when you sell it, but you still have a chance to redeem your property when your business has developed well and bring you the benefit you wish for.
Getting loan from friends or relatives
This method is very popular in Chinese community in other countries. Believe it or not this method of helping each other within community has been done form one generation to the next until now. It is undeniable that the Chinese is the very successful business doers all over the world.
So, why don’t you try to call a friend or your relative? Try to talk to him or her to get to loan to start your business. Make a good arrangement together and start your business right away.
Joining business workshops or trainings
Another alternative way of how to get a business loan is by joining business workshops or trainings done by business centers or institutions, either from the government or non-government institutions.
At the end of the workshops or training, frequently, the participants will be informed about the capital access for the new business.
These kinds of trainings or workshops are done by the ILO of United Nations through the government programs. You can use this access as your way to get the loan.
You can invite a friend or relative into your business. Share your business idea with him or her, then ask him to joint your business by sharing the capital you need for the business. Not only that, share the responsibility as well, including the risk of loss. Do the business together.
But, be careful, this kind of business contains quite high risk. Make sure both of you have created a written agreement before starting the business to avoid conflicts that may appear later.
The Capital from the Consumers
“How to get a business loan?”
“Get it from your consumers.”
“Is it possible?”
“Yes, of course.”
This way is commonly used by those who run catering business. The catering provider will ask the down payment, let’s say 30 percent to 50 percent of the total amount needed, from the consumer, then he will the money as the capital for his job until it’s done and get the rest of the payment.
Other businesses which use the similar technique are the laundry and the iron working.
Another easy way of how to get a business loan is by practicing this method of business, franchise. You can act as the business doer who runs a business, and you build a working relation with the owner of the business. The owner provides you all the facilities and even capital you need to run the business. Your shares depends on the agreement you make with the owner of the business.
Choose the popular brand so you get a bigger profit.