Beyond the Bank Loan: 6 Alternative Financing Methods for Startups
Credit: allstars/Shutterstock Many aspiring entrepreneurs have an idea for their business but lack the capital to actually start it. Brand-new businesses are often turned down for bank loans, and even if your business is established, funds can still be tough to secure. Loans funded by the Small Business Administration are usually more accessible, but they are becoming increasingly competitive. So what options are left for someone aspiring to be a small business owner? Here are six options beyond bank loans for financing your startup. Online lenders have become a popular alternative to traditional business loans.
National Commercial Real Estate Loans
Zions Bank is the leading nationwide secondary market commercial mortgage lender, co-originating or purchasing primarily owner-occupied first commercial real estate loans from financial institutions. Zions services a portfolio of more than $4 billion. Approved commercial mortgage lenders co-originate commercial real estate loans with Zions. So what are the advantages of working with Zions? Increased Earnings Increase earnings by receiving all origination fees plus the premium. And have no balance sheet risk. Call 800-748-3133 for details. Immediate Liquidity Co-originate or sell long-term (20–25 years) loans to Zions immediately without concerns over liquidity or concentrations of long-term commercial real estate loans.
Student Loans through Banks
There are very few students in the financial position to pay for their college education out of pocket. Nearly every college-bound student will need some form of financial aid, and most students will need to use a variety of funding sources to successfully cover the total costs of their post-secondary education. Scholarships and grants should be every student’s first priority, as the award money never has to be repaid. But even with scholarships and grants, most students will still be left with greater or lesser levels of unmet need. To bridge this gap in college financing, many students will need to consider some form of education loan.
Common Lending and Financing Options for New Small Businesses
Under the right circumstances, borrowing money can give a small business the boost it needs to get off the ground or reach its next milestone. Small business owners have several options for seeking out credit and loans, but it's important to know which small business lending option is right for your business and what information you'll need to demonstrate that your business is a good risk. Startup businesses commonly rely on personal loans from relatives or borrowing against credit cards to finance their ventures. Lines of credit and business loans are easier for more established businesses to obtain, because they have a track record of cash flow and management to report.
College Concerns: Types of Student Loans
All student loans are not the same. Knowing how different loans work can help you choose what's right for you. Here's a brief overview of each loan type. Federal loans The main student loan programs administered by the U. S. Department of Education are the William D. Ford Federal Direct Loan Program and the Federal Perkins Loan program. The direct loan program consists of Stafford loans (for undergraduate students) and Direct PLUS loans (for parents and graduate students). The Federal Perkins Loan is a loan for undergraduate and graduate students.
No Closing Cost Refinance
A mortgage refinance occurs when you obtain a new mortgage to pay off your old one. Usually this results in your paying a lower interest rate or changing other terms of your mortgage into terms that are more favorable to you. A no closing cost refinance mortgage is a type of refinancing that does not require the borrower to pay any closing costs. Closing Costs for Refinancing Closing costs can include, but are not limited to: Appraisal fees Survey costs Credit check charges Broker fees Loan origination fees Deed transfer fees or taxes Title search expenses Depending on the lender and how long ago you obtained your original mortgage, there is a chance that not all of these fees will be charged in a refinance.
Flagstar MyLoans FAQs
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Commercial Real Estate Loans
Many growing businesses eventually need to ask an important real estate question: Should I buy or rent? There are advantages to renting, of course: You typically have lower monthly payments and your landlord will generally be the one to deal with major maintenance issues such as landscaping or utility repair issues. When answering the question of whether to buy or rent, you need to consider all the impacts the decision will have on your business, for example: Cash flow Monthly payments are typically consistent and predictable based on your loan terms when you buy.
Best Small Business Loans for 2017
Right now might be the best time to find a small business loan since the 2008 subprime mortgage crisis. The improved economic conditions and a big increase in competition mean lenders are willing to slash their rates for good prospects. Apply Now Apply Now Apply Now Unfortunately, that doesn’t mean it’s easy to obtain a small business loan from traditional banks. You should still try — you’ll usually receive a lower interest rate if you can qualify. But if you’re like the majority of small businesses, you may come up empty. The good news is that a number of online lenders are giving banks a run for their money (and clients) by working directly with small business owners.
Small Business Loans for Good, Average and Bad Credit
*Annual Percentage Rates (APR), loan term and monthly payments are estimated based on analysis of information provided by you, data provided by lenders, and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers' credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history.