There’s nothing more exhilarating than good old-fashioned American entrepreneurialism. This country was founded on generations of people hanging out their own shingle and creating the country’s economy. The banking professionals at Legacy have a wealth of experience in helping people finance their dream business. Before you become the next tycoon of your chosen industry, here are some basic principals to keep in mind.
The Challenges of a Startup Business
It can be difficult to get a small business loan for your business in the first year. You may ask how do startups happen in the first place? In a businesses’ infancy most early startup capital comes from personal funds, borrowing capital from friends or family, and even ‘crowdfunding.’ If you’re not familiar with the process of crowdfunding, it’s basically receiving financing for your business by asking for small amounts of money from a large group of people, usually through ‘crowds’ on the Internet. Those investors almost always receive a gift or some other payment for their contribution.
Regardless of your solution for startup funds, it’s a good idea to have your personal finances in the best shape possible before you start. This includes a good credit score. It is possible to finance startups through credit cards, but you must be certain of your business idea’s capability for success. Defaulting on your credit card payments can cause difficult-to-repair damage to your credit score.
Existing Businesses and Growth
As businesses grow, needs for more equipment, increasing inventory, adding staff and opening a second or larger location frequently arise.
In order to find funding for growth, be sure to have proper financial reports prepeared about the business and tax returns available for the bank to review.
Luckily, Legacy National Bank has a number of ways to help small businesses start or expand. Just talk to one of the loan officers to find out what your best options are.
Some loans offer up to 7-year terms for working capital, inventory, supplies, lines of credit, etc. Other loans for equipment, large trucks or fleets of vehicles can include terms of up to 10 years. If your loan includes a real estate or location purchase, you could qualify for a 25-year loan.
Veterans Get Special Advantages
If you have served in one of the branches of the U.S. Armed Forces, ask about the Veterans Advantage SBA. These financial products are put into place not only to thank our nation’s veterans for their service, but also to promote the success of veteran-owned businesses.
These loans charge no SBA guarantee fee and can be available to honorably discharged veterans and their spouses. At least 51-percent of the business must be owned or controlled by a veteran or spouse of a veteran, and borrowers will be subject to approval.
Legacy currently offers this type of loan for up to $350,000 for qualifying US Veterans with no SBA guarantee fee charged.
Choose Lenders Carefully
When it comes to the finances of your business, you simply can’t be too careful. The fact is there are those who will take advantage of your goals and dreams. Fortunately you can always trust Legacy National Bank. And you don’t have to just take our word for it. Legacy is approved by the Small Business Administration (SBA) as a Preferred Lenders Program partner. This means the SBA recognizes Legacy’s team of specially trained SBA lenders because of their proven record of efficiency and success.
Also, another reason to trust Legacy National Bank with any financial product is that our local loan officers make all of our decisions locally. Our success is only measured by your success, and we want what is right for you and our shared economy. Our team of loan officers have worked with northwest Arkansas businesses of all sizes for over a decade and have experience to share with customers. Our employees live here, work here and have a vested interest in the surrounding community of Northwest Arkansas.