Member advantage: Accessing capital and loan opportunities for your business
Paula Fleming, CMSO, discusses finding the right funding with capital and loan opportunities for businesses. (May 2024)
Capital and loan opportunities for businesses: Finding the right funding
As a business owner, you understand that growth often requires an infusion of capital. Whether you're starting a new venture, expanding your current operations, or simply need funds to cover day-to-day expenses, there are numerous loan and financing options available. The Better Business Bureau is here to help you navigate the world of business funding.
Understanding your needs
Before you begin your search for funding, it's crucial to ask:
How much money do I need? Be specific and have a clear reason for the amount you're requesting.
What will the funds be used for? (Equipment, inventory, expansion, etc.)
How quickly do I need the funding? Some options take longer to process than others.
What repayment terms am I comfortable with? Consider interest rates, loan duration, and any associated fees.
Types of business funding
Traditional bank loans: Term loans or lines of credit from established banks. These often have competitive rates but can have stricter qualification requirements.
SBA loans: Loans backed by the Small Business Administration. These offer favorable terms but might have a longer application process.
Online lenders: These alternative lenders often have faster approval processes and more flexible requirements, but interest rates may be higher.
Business credit cards: A good option for short-term needs or ongoing working capital. Be mindful of interest rates and balance limits.
- Grants: Non-repayable funds from government or private organizations. These can be highly competitive.
Where to look for funding
Important considerations
Your creditworthiness: Lenders will assess your credit score and financial history.
Business plan: Have a well-written plan demonstrating your potential for success.
Beware of scams: Thoroughly research lenders before applying and never pay upfront fees.
The BBB is your trusted resource
We're committed to helping businesses secure fair and ethical funding. Our website offers reviews of lenders and resources to guide your decision-making.
