You have a great business idea. You make the plans and have the talent, but how do you get the financial backing? Convincing a bank or other financial organization to invest in your company can be one of the most challenging parts of getting a business off the ground. Here are some ways to secure small business funding. 

Funding Through Banks

There are a number of ways you can fund your business. Banks are a great place to start when looking for a small business loan. Traditional banks offer a large number of loans that are backed by the Small Business Administration. Banks are secure, but they will also be conservative in who they decide to back. They also require good credit and a business history of at least two years. Turnaround time can be long too, so this is a loan to consider if you don’t need cash fast. Make sure you have a sound plan and can show return on investment before approaching a potential lender. 

Credit Unions

Similar to banks, credit unions are also a great way to get a small business loan. They may have more options than a bank, so credit unions are definitely worth exploring. Plus, since they’re grounded in the local community, they’re going to have a better understanding of your market, which can be of great benefit as you’re starting a new business. Like banks, credit unions offer SBA-backed loans and financing options. 

Small Business Association Loans and Grants

The SBA itself can direct you to specific lenders. They also offer a wealth of information on grants and other ways to finance your new business. The SBA has a searchable database of firms specifically looking to penetrate new markets. This may give you more options or ideas than a traditional bank would. 

Online Loans

There’s potential to receive a loan online as well. Online lenders can be a good option if you lack collateral, you need funding quickly or you don’t have a long business history. Interest rates can be a lot higher with these loans. Often, you can get approved a lot more quickly though. Some even offer 24-hour or less turnover time. Make sure you do your research, because these aren’t SBA-backed and don’t always come with the same security as a bank loan though. 

No matter which option is right for you and your business, make sure you’ve done the research and choose the best loan to give you a financially sound future.