Startup Business Loans
May 15, 2023
New business owners quickly learn that finding startup business loans can be difficult. But that doesn’t mean securing funding for a startup company is impossible.
There are multiple financial resources and institutions that are eager to assist ambitious entrepreneurs. Lenders are ready to accept and approve applications for loans. However, it is important to know about the process and all of the loan options before jumping in.
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Business Loans for High Risk Merchants
If a business requires a high risk merchant account, they understand that the financial landscape for their business has additional requirements. Consistently processing payments is even more important than ever for these business owners. With extra hurdles, how do these companies get ahead?
Startup business loans and additional cash flow can be the catalyst that allows a business to scale. Banks and financial institutions are poised to distribute extra funds to promising ventures.
Types of Loans for Startup Companies
Depending on how long your business has been operating, the type of startup loan available will vary.
Payment processing history and track record of sales will be information that may influence eligibility for funding. Number of chargebacks and payment processing security measures can be a determining factor as well.
A term loan is one of the most common types of business loans. In this scenario, a business is given a loan to pay back over a set amount of time. The loan amount can typically range anywhere from $5,000 to $500,000.
Ideally, term loans should be paid off as quickly as possible in order to avoid paying more interest. This is known as a short-term loan. If you plan to take more time to pay off the loan, you could set up a long-term loan. In this case, the business usually has a higher maximum amount that is loaned. Because of this, the interest rate is usually lower.
Personal loans are a convenient option for business owners who have difficulty securing funding directly through their company. Getting approved for a personal loan can be easier because the bank uses your personal credit history, assets and income to determine eligibility.
If you have bad credit or no credit at all, this could prove to be more difficult. This is because financial institutions like to see a history of credit being paid back to the bank. However, this does not mean you can’t get a personal loan based on other financial factors such as income, savings, and valuable assets. An important element of personal loans to consider is that they are not tax deductible, unlike a term business loan. In addition to not being tax exempt, you are personally responsible for this debt instead of the business.
Financing For Your Startup Business
It is clear there are multiple options to get financing for your startup business. From short-term loans to long-term loans and even personal loans, entrepreneurs have more choices than ever when it comes to securing funding to their venture.
PayKings has a long track record of propelling high risk businesses to greater levels of success. As a result, their experts have very strong relationships with acquiring banks and financial institutions that provide startup business loans.
To begin the loan process for your business, call the professionals here at PayKings: (727) 300-0277
May 15, 2023 | Merchants | Dustin