Money does make the world go round and even if you have a sensational idea you are going to need money to bring it to the market for customers to be aware of things. There are a few sources of loans available since the economic down turn and the credit market is starting to flow again. You can get access to cash for your business but you need to get some leg work done now so when the opportunity presents itself you can seize it.
First and foremost – this cannot be stressed enough – you need a well designed business plan. You are selling the concept of your business and why the lender should invest their dollars in you instead of some other venture. If you have never drafted a business plan before then seek out the help of an accountant. The reason I mention an accountant is they deal with a wide range of businesses on a daily basis so they have the skills and knowledge to write up a professional plan. Secondly is if the accountant likes your concept they may be able to help you find potential lenders as well.
The process of securing self employed loans involves sourcing in many different areas. You can investigate various government programs to find access to loans or loan guarantees to help get things rolling. You should be prepared and able to put some of your own money into the venture. Imagine if you are a lender and someone asks you to risk your money in their business but they are not putting any of their money into it. You wouldn’t go for it and neither will other lenders. What is the minimum amount to put in is a question that varies depending on the type of model but you must have something in there otherwise the deal will not happen.
Since you are self employed the loans you do secure will not be conventional ones that you experienced as an employed person. Self employed clients are perceived as a higher risk to lenders so the underwriting process is lengthier. Be prepared to have your credit and financial documents reviewed in detail before getting an answer from the lender.
When looking at self employed loans do not take the first offer since the terms may not be to your liking. There are some deals that are great and some aren’t and if you take the first offer out of fears you will not get any others you are putting yourself in a precarious situation.
If you do not know where to find these loans you can either check with members of your local chamber of commerce or online on options available. When you are able to secure the funds you will be one step closer to realizing your dream of being the boss.