How can I get money to develop my business?

We leave you some options to obtain financing for your business.

For many business leaders, times of crisis are the ideal time to start a well-structured business. So if you think that now is your chance to seek financing for your business, then read on so you can learn some strategies.

Achieving success is the dream of every entrepreneur, so for those who dream of opening a restaurant, a hairdresser, a clothing boutique or a business of similar dimensions, fill yourself with optimism, an intelligent business plan and go out and find the ideal place. where you manage to finance your project.

Approach the government

We are not talking about knocking on the door of your mayor or governor. We’re talking about the famous state and federal programs that dole out invaluable incentives and courses to help small and mid-sized businesses looking to set up a business or even take it to the next level.

For example, the state of California has a small business program that offers loans to help create, retain jobs, and invest in low- and moderate-income communities. The program provides loans of $50,000 to $500,000 with a fixed interest of 5.5%, for 12 months.

On the other hand, the United States federal government offers loans through the Small Business Administration (SBA). Before applying for financing or a loan you must have a business plan and have good credit.

Look for bank financing

Calculate the budget of your business, experts suggest that you should increase the investment by at least 20% so as not to ask for new financing again in case the sales are a little late, and then approach the bank or savings cooperative that best convinces you, these offer loans for businesses and companies. Wells Fargo bank offers business loans with a fixed interest of 8.25%, the amount you can get is from $10,000 to $100,000 and the term to repay the loan is from 1 to 5 years.

Similarly, Chase offers business loans starting at $5,000 for a term of 12 to 84 months. The loan can help you finance 100% of the costs of the business and you could even have benefits when filing taxes.

How about a personal credit

There are projects or entrepreneurial ideas that, although they are all our dreams, do not always enter the considerations to apply for a government incentive or bank financing. For those cases, there are personal loans, which may have lower interest rates, however, they do not provide the same benefits as business loans, such as incentives or tax exemptions.

With Lendingtree you can get a loan from $1,000 to $50,000. Depending on the amount of the loan, the interests could vary from 3.09% to 35.99% in percentage of annual rate. Or you can get a no-fee, fixed-rate personal loan from Marcus. With the loan you could obtain up to $40,000 with an interest of 5.99% APR. Interest rates can range from 5.99% APR to 28.99% APR and loan terms range from 36 to 72 months.