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Up to 7 years for Working Capital, 10 Years for Equipment, 25 For Real Estate

Less than 15% approval rate

This Loan Can Take Several Months to get

10% Down Payment, Personal Guarantee are Required, but the assets acquired serve as collateral

Loan terms of 10 or 20 Years

Very difficult to qualify for

This Loan Can Take Several Months to get

Loan terms of up to 6 Years

You have to take classes first and submit a business plan

This Loan Can Take Several Months to get

Along with the aged corporation and your good credit (720+), apply for a “stated income loan”

If successful, you can receive a line of credit from $50,000-150,000

2nd Source of Income (a job or a working spouse, or another business)

$150,000 Liquid Net Worth ($$, investment or retirement accounts)

Loan terms of 2-5 years

Take a Loan Against Vehicles or Equipment You Own

Good credit not required – but rates depend on credit.

Customers with reasonable credit often find the tax savings negate most financing charges

Higher Rates (but often compensated for with tax savings)

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You may not know how to amortize a loan properly

This could cost you relationships!

Have Multiple Cards? Do the Credit Card Shuffle, and Get Zero Percent Financing (You’ll pay 4% each time)

You may be warned against this – people that don’t understand finance might think it’s risky

(Let’s be serious, anyone lending money to a startup is going to ask for a personal guarantee, so how would using your credit cards be more risky than anything else?)

Higher Rates (but often compensated for with tax savings)

The One Good Thing is You are Paying Interest to Yourself

If You (or Your Spouse) Leaves the Employer at Which the Funds are Held, the Loan will be Due in 60 Days.

NEVER do this Without Talking to Your Accountant First. Taxation Rules on this Can be Tricky.

Hard Money is Often Referred to as a Type of “Bridge Financing” as it is Best as a Shorter-Term Funding Option

Rates can be High, With Large Origination Fees and High Interest Rates

Since the Property Serves as Collateral, this is One of the Only Business Loans that Needs no Personal Guarantee

You Can Sell Off Your Invoices to a “Factoring Company”, Receiving Cash Today

Factoring Can Be A Good Choice for New Businesses – Qualifying is Based on Your Customers’ Business Credit, not Yours

If You Have Orders to Fulfill, but Not the Capital To Buy Materials, You Can Finance Against Purchase Orders

Kickstarter.com has been a popular platform, with several startups finding hundreds of thousand (or even millions) of dollars in seed funding.

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