There Are Options To Help You Get The Startup Loan You Need

Online, June 21, 2011 (Newswire.com) - Those who are looking to start their own businesses may have a difficult time getting a startup unsecured loan - a bank can say no because of one small detail, or they can say no "just because."

Most of the time, it's just because banks and credit unions just aren't interested in unproven businesses, even though the applicant may have the best possible business plan.

But there are startup loans available for those who are starting a new business. You just have to know where to look, and learn to think strategically and creatively. Here are some ideas for sources to get that startup loan.

As difficult as it may seem, bootstrapping a business startup may be the best way to go. If you can find a way to finance your venture yourself, you won't have to answer to investors or lenders, and you can have total control of your business. But bootstrapping requires some serious strategy and planning. You may even have to pledge your own assets.

Another alternative for a startup business loan is asking for a loan from family and friends. You can usually get fairly lenient repayment terms, and that could be important in the early years of your business. You may also get a low interest rate. But you may have to allow your investor the opportunity to have a stake in your business.

Small Business Administration loans are the most popular option for startups. The SBA doesn't make loans to startups, but they guarantee a portion of loans startup businesses apply for through banks, insurance companies and pension funds, making it easier for new business owners to get the startup loan from a bank that would otherwise be unwilling to lend.

Small Business Innovation Research Grants and Small Business Technology Transfer Grants are also good sources for startup loans. Eleven federal agencies, including the departments of Agriculture, Energy and Defense, give out funding each year to small businesses that have innovative ideas.

Another option for startup loans is the use of an angel investor. Angel investors provide either startup or second-tier financing. This type of investing is a type of equity financing. In return for investing in your startup, the investor gets a percentage of ownership in your business.