You’re in the beginning stages of a new business and struggling to cover costs. Or maybe you have a few months of reserves, but going all-in with your business means you’ll draw the account to zero and put the financial health of your business at risk.
Either way, a startup loan could be a viable solution to access the capital you need. But with so many lenders out there, how do you know which is best? Instead of spending hours searching for the perfect fit, consider an online lender matching platform, like Lendio, to assist.
Lendio is a one-stop shop for business lending, rated by Forbes as one of the best lender comparison sites. To date, the Better Business Bureau (BBB) accredited platform has matched thousands of businesses owners with lenders in its extensive network. It has helped provide over 300,000 small business loans amounting to well over $12 billion. Its impressive roster of funding partners includes American Express, Bank of America, Chase, Funding Circle, Kabbage, LendingClub and PayPal.
Best of all, you can apply in just 15 minutes with no impact on your credit score. Keep reading to learn more about how startup business loans work, the eligibility requirements and what you’ll need to get started with Lendio.
Take Your Business to the Next Level
What Are Startup Business Loans?
Startup business loans cater to up-and-coming entities. They’re used to cover common costs, like inventory and equipment purchases, payroll for new staff, office space lease payments, or other monthly expenses your business will incur during the startup stages.
Plus, you can have peace of mind knowing you have the capital you need to grow your business. You won’t have to empty out your personal savings accounts business reserves or ask friends, family or investors for money. Instead, you’ll have a financial cushion at your disposal to make intelligent financial moves without the added stress of coming up with funds or placing your business in a financial bind. Even better, you won’t have to worry about closing the doors to your company if you encounter cash-flow issues.
How Do You Qualify for a Business Startup Loan?
It varies by lender, but you should also have a business that’s been up and running for at least 6 months and relevant industry experience.
There are instances where the lender will require collateral to secure the loan. In that case, you’ll have to attach your home, car or another valuable asset to the loan. If you fall behind on payments, the lender could seize your asset and sell it to recoup what’s owed.
What Is the Minimum Credit Score for a Business Loan?
Lenders in the Lendio network generally require a credit score of at least 680. The minimum credit score for a business loan is likely higher if you apply with a traditional bank.
Can You Get a Startup Business Loan With Bad Credit?
Worried you won’t get approved for a startup business loan because of your low credit score? That may not be the case, as some lenders will still consider you for a loan with poor credit history. To gauge your approval odds, consider scoping out your loan options with Lendio. If a startup loan isn’t a good fit, you could qualify for one of these other products:
- SBA Loans
- Business Lines of Credit
- Short-term Loans
- Merchant Cash Advances
- Term Loans
- Equipment Financing
- Commercial Mortgages
- Accounts Receivable Financing
- Business Acquisition Loans
Take Your Business to the Next Level
How to Get a Startup Business Loan With Lendio
The startup loans from partners in the Lendio network range from $500 to $750,000 with repayment periods of up to 25 years and interest rates between 0 and 17 percent. If your application is approved, you could have the funds in your business bank account in just 2 to 4 weeks.
Here’s how the process works:
- Step 1: Complete the online application and upload supporting documents. This process only takes 15 minutes of your time and will not affect your credit score.
- Step 2: Review potential matches for funding in the dashboard.
- Step 3: Choose the best funding option for your business and move forward with the formal loan application. (Quick note: a hard credit check will be performed at this point, which could impact your credit score).
- Step 4: Access the working capital you need for your business. It could take two to four weeks to receive your startup loan proceeds, but some loan products provide you with funding in just 24 hours.
Before you apply, you’ll need the following information and documentation on hand to expedite the loan review process:
- Personal background information
- A resume and solid business plan
- Credit reports
- Personal and business tax returns
- Signed personal financial statements
- Projected financial statements
- Personal and business bank statements
- The cost or value of possible collateral
- Business licenses and registrations
- Articles of incorporation
- Contracts you have with third parties
- Franchise agreements
- Commercial leases
Breathe life into your business and give it the best chance to thrive. Apply with Lendio today!