SBA Small Business Loans – A Huge Benefit to Start-Up Businesses

Setting up a new business is never easy. There are innumerable details that need to be taken care of. Start-up businesses are mainly dependent on loans for almost all their business requirements. It is therefore extremely important to find an appropriate and reliable lending source to cater to their financial needs. However, since most conventional lenders and banks are not keen on providing loans to new business owners due to various security reasons, opting for SBA small business loans can be an excellent idea.

Small businesses can contribute immensely in developing and enhancing the nation’s economy. The Small Business Administration (SBA), which is a United States government agency that provides loans to small businesses with the aim of improving the country’s financial condition. These loans are meant to support the establishment of small businesses by providing through adequate financial assistance. These loans cannot be obtained directly from SBA, but through a number of their lending partners working in accordance with the SBA rules and regulations.

The SBA offers a wide variety of loans that demand different qualifications of the borrowers. The various financial programs offered by SBA such as surety bonds, debt financing and equity financing are designed to cater to the different financial requirements of borrowers. In order to avail a loan from them, it is extremely important to understand how the SBA works. Let us discuss some basic rules and regulations of the SBA:

  • The SBA loans are provided to business owners at a lower interest rate than banks and other conventional lending sources owing to the fact that start-up business owners do not have adequate capital to opt for loans with high interest rates.
  • SBA does not provide loans to small business owners directly. Instead, they merely set certain rules and regulations that are strictly followed by their partners, including private-sector lenders, micro-lending institutions and community development organizations, who are authorized by the SBA to provide loans to start-up businesses.
  • The loans are provided to the business owners under an SBA guarantee to ensure that the loan is repaid on time to the lending partners. Business owners cannot avail SBA small business loans in case they have the eligibility to obtain loans from other lending sources on affordable and reasonable terms.
  • You can obtain SBA loans fast and without any kind of hassles. They can be acquired on an immediate basis as soon as they are applied for. This can be immensely beneficial for start-up businesses that need financial assistance for all their business needs. Delay in acquiring loans can create problems for them in setting up the business.
  • One of the most beneficial aspects of SBA loans is that they can be availed even if you have a poor credit record including bankruptcy, insolvency, IVA etc. It can be an excellent way to improve your credit records.
  • SBA offers various kinds of loans, including 504 for purchasing real estate and equipment, 7 (a) for common small business loans, disaster loans and microloans. Not all banks issuing SBA loans offer the same loan programs. Moreover, in accordance with individual bank policies, the loan requirements for a particular program can differ from bank to bank.

The SBA rules and regulations for small business loans are designed to help start-up business owners and can be extremely beneficial for them.

Marketing Idea: Small Business Guide To Success

It doesn’t matter if you have the greatest product or service on the planet. Or even the universe. You could have the cure to AIDS, or the solution to world hunger or poverty. But just because you have it, does not mean that people automatically know that you have it.

You have to get your name out there, you have to get your product or service out there. There are several different ways you can do this. But gone are the days where you can just post a in the local newspaper and get the word out to the entire town. A more creative measure is needed in today’s world.

First

This means that you’re going to have to get a website and a Facebook page. Domain names are extremely inexpensive today. Only 9.99 for a.com domain name.

When people are searching for a product or a solution, and they come across just a phone number listed on a directory with no website. It is a complete turnoff for potential customers.

The websites are also extremely easy to design now a days, especially if you choose a WordPress blog, then you have thousands of themes available at your disposal. Most of these are drag and drop to design.

Second

The next great thing is a Facebook page. It is completely free and you immediately have access to 100s of millions of people. There are also tons of free apps that you can use to customize your page and bring more value to your customers.

Third

You have to analyze your business. The best way to do this is to learn from other businesses mistakes.

Here are the top 6 reasons businesses fail:

  1. Not Learning Enough About The Market
  2. Not A Detailed Business Plan
  3. Too Little Or Poor Financing
  4. Bad Location, Bad Internet Usage, Bad Marketing
  5. Not Shifting With The Market
  6. Expanding Too Quickly Beyond Your Capability

So you need to take a quick look at your business. Hopefully you learned about the first three before you started your business. But we covered the last 2 in the 4th step already.

But one thing you need to realize that the customers are in control of what they demand. Just because something worked before, doesn’t mean its always going to work. Take the case of newspaper ads. That may have worked in the past, but if that is your main source of marketing today, you’re going to fail.

Making Money Ideas – Small Businesses

Basically there are no easy ways or skipping steps towards making money. A profitable business can increase the sales by employing a professional but if your business is at the edge of struggle then you may need some money making ideas to continue generating income.

There is no absolute channel to make quick money, especially if you are a business owner. No doubt, if your business is doing well then you have no worries to continue producing money from the employment of more experts. But if you are a beginner or is balancing your float in the business field, then you should give a try to some business ideas.

Among the many make money ideas, one of the foremost is to get your customers say yes to you. Try to ask direct questions that require a yes or no and ask them in a way where more likely the answer will be a yes. Most of the time after several agreement from your customers, it is much easier to continue persuading them into the purchase or at least show more commitment towards the product.

Another money making idea is to repeatedly staying in touch. This suggestion is asking you to have contact with every client after a successful trade. Instead, try to stay connected with your customers to update yourself about ongoing things besides grabbing any business opportunities. A brief follow up conversation with your clients could be an excellent arsenal towards making a profit.

Besides the two listed make money ideas, as a businessman, you should never hesitate to offer a guarantee. Offering guarantee or providing a trial offer to your customers is a rather effective idea to make money. Besides boosting their confidence, they can try out the product or service before deciding upon the purchase. This may be a good selling point as customers’ confidence is pretty contagious so the spread of news will help increase your sales.

Apart of that, there is one money making idea called opening the doors with smaller sales. If you are a beginner in the entrepreneurial field or have yet to gain popularity, you may first focus on the small sale to earn a new customer. Perhaps you can offer a free or inexpensive trial on the product or service to attract your clients. Besides, this can be a survey platform as to understand the customers’ needs and wants thus business owners can plan and arrange business strategies to expand the business sales.