Small Business Loan
Small business loans are available from a number of banks.
It normally pays to approach smaller banks and credit unions rather than the
large institutions for business loans, since they may be easier to deal with.
A small business loan usually requires some sort of
guarantee. Small business loan security is normally provided in the form of a
mortgage over some assets such as real estate or shares. If you do not have
asset backing, it is often hard to get a small business loan. In this case, you
may be able to apply for a personal loan instead.
It is normally the person who takes out the small business
loan who is acting as a guarantor. However, this is not always the case.
Sometimes it is possible for a third-party, such as a relative or friend to act
as a guarantor. This may be an easy way to get finance, if you don’t qualify
yourself. On the downside, the person who acts as the small business guarantor
will take on some of your business risk. If your business fails, they will have
to pay back your small business loan. This could certainly put a strain on your
relationship, should it happen.
