Question by Bobby R: Are SBA loans the only loan a bank will give out for a small business?
I would like to know if bank give out loans to buy small businesses or do have to get a SBA loan?
Thank you
Best answer:
Answer by Banker1975
Just to give you a website that is extremely helpful, here is the SBA website. www.sba.gov and this is another link as well. http://sba.gov/services/counseling/index.html This site gives you information on additional ways that small and new businesses can grow. Also here is one bank that I know of that does SBA loans. It depends on where you are located. Check around, there may be more local banks than what you knew of that did support SBA loans. https://www.suntrust.com/portal/server.pt?space=CommunityPage&cached=true&parentname=CommunityPage&parentid=3&in_hi_userid=2&control=SetCommunity&CommunityID=295&PageID=0
What do you think? Answer below!
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Hi, you should try a merchant account cash advance. It’s like a loan but it’s actually NOT a loan.
Unlike a traditional bank loan, you don’t need good credit OR collateral. Basically, you can borrow up to $ 200k and your pay back by a portion of your future credit card receivables. You don’t have any fixed repayment amounts or late fees. Very flexible.
Check out http://www.groupbankcard.com and click on the cash advance tab for more details.
How big of a loan? If it is under $ 30k you can try Prosper – an online lending community…
http://www.prosper.com/join/lunyc
They are not some shady loan shop- and they have been featured in the New York Times, Money Magazine, etc.
I first read about them in Money magazine – pretty cool idea, people get together and combine their money as a community into making a single loan.
I have used them for a loan to start a small website (and pay down some high paying interest)- you will have a much better chance of getting a loan than with a bank – and probably at a much lower interest rate.
Right now I am paying 10.5% on a 15k loan- not too bad IMO. You can take loans out for up to $ 30k I believe.
Make sure you make out a nice profile, and come up with a fun/interesting/sob story background to make yourself look trustworthy – it will help you improve the chance that people will bid on you (oh and a photo always helps
)!
Try to join a group as well – it can help lower your interest rate. Don’t forget Prosper checks out your credit history, so you won’t be eligable for lower interest loans unless you have a great background – but you can always take a higher % rate, it will probably still be lower than a bank loan (if you could get one…).
Even if you have bad credit what you will get from the Prosper community will likely be much lower than you
will get elsewhere – and it will be a secure, safe loan – not some underhanded ‘get hit with 50% suddenly’ loan shop!
You can also loan out money to help others on the site. Not only will you make a pretty good return, but your risk is fairly limited- and you can screen each applicant and choose which people you want to lend to- I have not done this yet, but I like the idea..
Good luck!