Benefits of Startup LoansPublished on 10th April 2018
Running and growing a startup can be an exciting step in your career path. However, it’s not without its challenges. As well as making sure you have a clear vision and a concise business plan, you also need to ensure that you have access to sufficient amounts of cash to back it up. This is what can make or break your business. Although it can be tough, acquiring the funds that you require can be achieved, providing you know how. By applying for a Startup Loan you could receive the funds that you need to grow, refine and push towards a brighter future. So if you’re running an emerging startup business but need some extra cash at your disposal, here’s how applying for a Startup Loan could help.
- Access to a range of finance solutions
- Applicable for a variety of purposes
- Choice of repayment methods
What kind of Startup Loan could I apply for?
Acquiring a bank loan at such an early stage can be difficult due to your business lacking a sufficient trading history, there are still external funding opportunities available. So as well as Peer-to-Peer Lending, your business may be able to qualify for Secured Loans, Merchant Cash Advance, Invoice Finance, Asset Finance or Government-backed Startup Loans. Many of these products are secured against collateral such as equipment, machinery, vehicles or property, meaning that they could be repossessed if your business defaults. But if you lack sufficient assets or you’d rather not put them at risk, there are also Unsecured finance solutions available that you may wish to explore too. So before applying for a Startup Loan, make sure that you fully understand how each of these products works.
What can I use a Startup Loan for?
As a Startup, the number of possibilities open to you is vast, providing you can secure the necessary funds. If you choose to apply for a Startup Loan know that many of the products available to you carry no usage restrictions. This means the funds that you could acquire can be applied to any aspect of your business, no matter what the purpose may be. So whether you’re looking to acquire more equipment, expand your fleet or gain a cash injection in the run-up towards a key business project, applying for a Startup Loan could offer you a suitable solution. However, if you’re using a Government-backed Startup Loan, usage of these funds may be subject to the terms and conditions of the concerned scheme.
How do I repay a Startup Loan?
Although many of the products available are gradually repaid over an agreed period using Fixed Monthly Repayments, there are other repayment schemes available. Depending on your chosen Startup Loan, you could also settle the agreement using either Flexible Monthly Repayments, Deferred Payment or use the money owed to you in unpaid invoices. So by choosing to apply for a Startup Loan, you could source an agreement that takes into account how you operate and is repaid in a manner that’s affordable for your business’ finances. However, in order to source an agreement that works to your business’ benefit, make sure that you fully understand how each product works before applying.
Thinking about applying for a Startup Loan?
Although it’s one of the most exciting stages in your business’ development, running a Startup can be as frustrating as it is rewarding. But in order to push back the boundaries of your business, you need access to sufficient amounts of cash. Sure, your first may be to approach your local bank for support, but without a developed trading history they might not be able to assist. Instead, you could explore other funding opportunities and gain the funds that you require by applying for a Startup Loan. But, with so many products to choose from, sourcing an appropriate solution can become an obstacle in itself. However, we’ve already done the hard work for you. So if you’re in need of new equipment, cash flow support or a cash injection, apply for a Startup Loan today or find out more with Rangewell.
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