What is a startup business loan?
Karnchea Barchue • Jan 23, 2021
Startup business loans aren’t a specific type of loan; rather, they are any type of loan used to open a new business. You might need this money to help develop a product or service, hire employees, lease space or equipment, and buy inventory. Startup loans can also include funding for businesses that have opened their doors but are still in the earliest stages.
Nine types of startup business loans and financing options
- Self-financing
- Financing from friends or family
- SBA loans
- Local business financing
- Crowdfunding
- Grants
- Asset-based financing
- Business lines of credit
- Online term loans
Startup loans generally don’t require business credit or high revenue—lenders know they’re lending money to support a new idea. However, your personal credit and experience in the industry can affect your eligibility and loan terms. You can also use different types of financing to support your business
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