Finding financing options to start or grow your business can be tricky for small and medium-sized business owners. Few small and medium-sized business owners have loads of spare time on their hands. The process of searching through hundreds of lenders and working out precise offerings can be daunting on top of everything else there is to do.

There are hundreds of lenders out there, but often the terms offered to small business owners are filled with complex wording and conditions.

Many banks and other financial institutions may not be willing to lend you the amount of money that you need to begin your business or make changes you need to keep your business afloat.

Small business owners who do not take time to carefully research their financing options end up signing up for a loan with terrible interest rates or terms and conditions. Additionally, small business owners often accept loans for much lower amount than they originally hoped to secure.

This not only forces you to change projections for your business, but it may also leave you looking for another loan to make up the difference. Taking on multiple loans is a slippery slope for any small businesses and can complicate your financial situation.

So, how can small business owners find the absolute best small business loan that will help them start or grow their business while not being buried in ridiculously high interest rates or other negative terms and conditions associated with the loan?

Here's a guide:

1. Learn the full price of the loan. Be sure to check for hidden fees and upfront costs.

2. Check the actual interest rate. This may be shown as an annualized rate on the contract. Be sure to get the full payment schedule so you won’t have any surprises when payment is due.

3. Documentation. You’ll either need a business plan or all your financials plus your business paperwork.

4. Get your finances in order. This isn’t just essential for getting the loan but also to plan for timely paying it off.

5. Learn about different types of loans. Select the type of loan that best fits your situation.

Know the complete pricing of the loan:

Unfortunately, there are many individual lenders, lending agencies, and even well-established banks out there looking for ways to take advantage of the often vulnerable economic situation of small business owners. Many lenders know that small business owners, especially when starting a new business, are likely to face economic hardships that will leave them in need of small business funding to get their business up and running.

Capitalising on this weakness, many lenders may try to draw in small business owners with promises of low business loan interest rates. Often these are heavily advertised. For example, one lending agency might offer small business finance with 1% advertised annual percentage rate. While that rate would certainly be great for your business, that same lending agency might be charging exorbitant payments and fees to sign you up for the loan. High hidden fees associated with small business loans, especially if you’re asking for a small amount of money, can make the total amount you pay back much higher than if you were to opt for a more transparent loan with a higher interest rate but no hidden fees.

About Smackeroo

Smackeroo Money provides a free service to help you find the right home loan, business loan, personal loan and credit card from a big selection of leading mortgage and finance banks & non-bank lenders.

Smackeroo Money is dedicated to helping the everyday person find a loan. Completely FREE to consumers with no locked in contracts, Smackeroo Money connects you directly to a carefully chosen panel of lenders who are competing for your business, where you can negotiate a better deal, saving you time, hassle and money.

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