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Friday, 4 November 2016

SBA Loans Help Businesses Get Ahead

By George Hall


Almost everyone has a dream to be their own boss someday and may have the qualifications, along with the will, to do so. If their product is marketable, they may even succeed at running their own company. However, the startup funds may be lacking or there may not yet be any money set aside but there is hope. Even if a person has average credit, they may qualify for SBA loans that can help make their dreams come true.

Loans of this kind are easier to acquire than most bank loans and have lower interest rates. While some private lenders may have an enticing offer for those with below average credit, the cost after the astronomical fees can take forever to pay off. The Small Business Association has multiple resources that can help anyone transition into a successful business owner.

A person may feel that because they know their product and basic math, this is enough to run a small business. These cover areas aspiring business owners may not realize just yet, such as how to spend when starting out. Other areas may include marketing, networking, or learning how to maintain a work life balance.

Sometimes, people are trained to live from one paycheck to the next. However, a business of any size should be looked at as an investment, so one should be prepared to think how they look at money. This holds true for those looking to expand or pass it down to the next generation.

When it comes to startup costs, it is easy for the average person to underestimate how much is enough. Sometimes businesses are not prepared for immediate growth, such as outsizing the current workspace or needing to hire additional staff. Having extra money in hard is also great for when items needed for operation need replacing or when it becomes necessary to take time off.

There are many funding options available with the SBA, such as grants. Since repayment is not necessary, having this can take a load off anyone dealing with the rigors of business. While these are available to a select group or demographic, details can be found on their website or local office. Counselors look at each case and may suggest ways to obtain more financing.

Sometimes a person may not get the loan amount they initially desired but they may be offered guidance when it comes to make the funds stretch. It may help to buy basic equipment and supplies or rent a smaller space. Some businesses can be run entirely online, which can drastically cut costs. Counselors can make suggestions or provide additional funding sources that will not leave a person too deep in a financial hole.

Using this agency to get started often results in getting educated about running a small business. Even if a person has been at it but could use a boost in sales may find a wealth of information also. The content that is available is easy for most to understand, contains only the facts, and are updated accordingly. Going through the loan process with success can make it easier to obtain future loans from banks.




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