5 Signs You’re Ready for a Startup Loan
Need more money to get your startup off the ground? Small businesses that have been operating for less than one year may be eligible for Entrepreneur Works’ most popular financing option: the Startup Loan.
Check out these five signs that your small business is ready for a Startup Loan
- You’ve tested your business idea, and have found a few paying customers.
Before you apply for a loan, try selling your product or service to friends, family and neighbors. Make receipts! Existing customers assure both yourself and the lender that your idea is viable. Start small, no need to sign a lease for a brick and mortar store before proving that your product or service will sell.
You know exactly how you would use the loan.
During the process of testing your business and finding paying customers, you’ve found that you need something specific in order to expand. Inventory, equipment, or uniforms are some examples of specific things you may need to grow or formalize your business. Research the price of what you need and make sure to include this in conversation with lenders.
You have additional sources of income (beyond the startup).
It can take months or years for a new business to make money. Having a secondary source of income, like a part time job or savings, can help to pay the bills and repay your loan while your startup gets off the ground.
You have a business plan and cash flow projections.
A strong startup has a plan of action, and the numbers to back it up. A business plan will help you chart the growth of your business, and cash flow projections will help you understand how much money it will take to get there. Having this information proves to lenders you’ve carefully thought out how the loan will impact the expansion of your business.
Not sure how to write a business plan or project cash flows? We can help! Sign up for our newsletter to get notified of upcoming classes and workshops!
You are passionate about your start-up!
Starting a business is an expensive, long-term commitment. It’s not worth spending time or money on an idea that doesn’t get you excited! Make sure to express your passion for your product or service to lenders.
Interested in a Startup Loan? Have a question about what you’ll need to apply? Give our Loan Department a call at 215 545 3100 ext. 227; we’re happy to help!