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On your effort and desire to get a new start up business going and on your search for new start business loans.

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Like most other entrepreneurs or new startup business owners the one thought that is driving you the most is, in reality, the least important. That is: "How do you finance your new start up business!"


The Start Up Loan Options

Banks and New Start Up Business Loans

The most typical method for new business start ups looking for new start up business loan sources is to consider the neighborhood bank. You are probably no different and may have already wasted your time visiting one. Forget that. It's a major waste of time to go to a bank for a starting business loan. First, banks don't lend money for startups! Not unless you have so much collateral that the bank thinks that what your are trying to do is a hobby and, most importantly, your collateral will be enough to cover any losses they may have.

Although banks are supposed to be out there finding borrowers, their bottom line is based more on the sure-thing than anything else. Unless the new start up business has the resources, or is in an industry that is growing extremely well (High Tech prior to 2000 or Bio Medicine now), you will be better served looking elsewhere.

Contrary to popular belief, banks could care less about what you want money for as long as you have enough money with them already. They don't lend money as much as they lend your money back to you. In your situation, forget the banks.



Don't borrow money from your friends either for your new start business loans. If something were to happen and you found yourself unable to come up with the payments for your new start business loans, you would be hard pressed to keep the friendship up and would end up in a world of hurt. And, possibly end up losing your friendships as well. It's not worth it.
That goes for collateral as well! Don't use a friend's collateral for your new start up business loans either. More on this later.

Credit Cards

Don't use these for your new start up business loans, either! The cost is far too great for you to go this route. There are so many out there who tried this route only to find that they couldn't keep up the credit card payments and had to consider very drastic measures to get out from under. Unless you know that you are going to be able to make the payment at the time the statement comes due, don't even try this route on any sure thing. If it is so sure, wait until you have the money! Trust me on this.


Equity Lines of Credit

Equity lines of credit are simple and fairly easy (still) ways to borrow money. In many ways this would be considered signature loans, where you sign for the money when you need it. Obviously you need to have equity to be able to sign for the loan or it won't work. But, and more so lately, you also need to have spotless credit to be able to take advantage of these loans. (or, you would have already done so.) Seriously though, do you really want to sacrifice your home for this purpose? Don't go this route either.


One more: Borrowing from relatives

Whatever you do, this is definitely one to ignore. No matter how much of a sure thing you have going with your new start up business. This one is rather interesting though! Do you want to get a new start up business loan from a relative? First, it will be the most demoralizing thing to do as your relative will probably try to get you to go to work at mickeydees first and forget all about your business. Besides, if you aren't able to pay it off do you really want to go to the next family reunion knowing you owe your relatives money? It will be a very hard thing for you to live down and when you do succeed you will not hear the end of it, "if it wasn't for me "giving"� you that money to help you start the business you would still be working at mickeydees."� Definitely "Not worth it"!


These are just a few options that are usually considered when a start up business decides it needs financing. These are not the only options. I brought these up so that you know they are always foremost on someone's mind who is looking to start a business. Unfortunately, these are the most costly for you to deal with.


The reason why is simple. Banks look for sure things, and so do credit cards, and getting an equity line of credit for your new start up business loans is very risky.
When it comes to relatives and friends, the old saying is worth heeding, "Never a lender not a borrower be." Lenders will loose on the relationships they had before and borrowers will often end at the mercy of the lenders. When it comes to relatives, it is even worse! You are judged on all the prejudices carried by those you go to for support or for financing.
If you would like more information on this or any other items here send me an email loans@start-business-loans.com with your questions

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