Best choices of personal loans & credit cards if you are a new startup
When it comes to starting up a business one of the biggest hurdles to get across is the money. No matter what type of business you are creating an initial sum of money is required to get you started, to pay for equipment, electricity, water and many other facilities (one of the bigger ones in Pakistan is tea but you may not need to worry about that one) that your employees may require depending on the type of business you’re starting. Now, some people can afford to tug some money from their own pockets to push their start-ups into action but for others the story may not be the same.
For such people there are business loans, sums of money granted to them to help get their dream of entrepreneurship off the ground but at times it can be difficult for players, who are new in this field, to have a loan granted to them.
This is where personal loans come in, many small start-ups look towards personal loans instead of actual business loans since it’s easier to do so instead of going through the complicated and difficult process of applying for an actual business loan that may not even be granted. There are plenty of different places to get personal loans, the best choice for you depends on your requirements and your qualifications like your credit score, or how large of a loan you need.
If your business is at least a year old and you need a small sum of money quick then “Street shares” may be the answer for you. They have worked with a wide range of small businesses, granting loans to businesses that are as young as 1 year old and have credit scores as low as 600! They have also have one of the lowest requirements for revenue made by a company ($25’000 at least) and have funded and approved loans in less than a week, with loan sizes ranging from $5’000 to $10’000 and terms of 3 to 36 months.
Let’s say your business is a bit older, for example 2 years, and you need a loan a bit higher than what Street shares has to offer, then perhaps “Lending club” has what you are looking for. Lending club works with businesses that are 2 years old or more and have a gross annual revenue of at least $75’000. Their loans have the range of $50’000 to $300’000 and terms starting at 1 year going up to 5 years, their credit requirement is also around 650.
Another requirement for a blooming business is a good credit card, one that can help support the business with a good rewards plan and doesn’t cost much. Nav.com and Fitsmallbusiness.com have both claimed that one of the more beneficial credit cards for a business to get is a Chase Ink Business Cash card. It has no annual fees and is known for its cash back rewards plan. In said plan you get $300 back after you spend $3000 in the first three months and 5% cash back for every dollar spent on Internet Expenses, Landlines, Cable, Office Supplies and Cell phones, up to $25’000 a year! According to fitsmallbusiness.com the card also offers 2% cash back on purchases made on hotel and gas up to $25’000 a year and an uncapped 1% cash back on all other purchases.
If your start-up would benefit more from a travel rewards plan rather than one that is centred around money then American Express Business Platinum or Capital One Spark Miles are credit cards you might want to look more into.
Starting a business is never easy, unforeseen expenses lie around every corner and hurdles only get higher as time goes on. The only solution is to get past those obstacles and keep moving forward. I hope the advice I’ve given in this article helps you on your journey of entrepreneurship, and the best I can do for you is to tell you to work hard and wish you good luck!