How can I get A business loan for free?

Question

I want to start my own business but don't have the money to start.

Answer 1

If you are talking about a small business loan from financial institutions, you stand very little chance of getting a loan without any capital and collateral. Collateral can be personal and business assets such as house, receivables, stocks and bonds, furniture and fixtures, among others -- that can be sold to pay back the loan.

Collateral provide banks with the assurance that they can get their money (or at least parts of it) back, even if you cannot pay. Even SBA-guaranteed loans as well as micro loan programs require some form of collateral to secure a loan.

Banks, including the Small Business Administration will not give you 100% of the financing you need. You can read here the requirements of Small Business Administration for the small business loans that they guarantee http://www.sba.gov/financing/preparation...

1. Equity investment
2. Earnings Requirement
3. Working Capital
4. Collateral
5. Resource Management

They need to see that you are invested in your business -- which means they need to see you have money before they give you money. Otherwise, it's an extremely tough deal.

If you do not have collateral or capital, you will need to have a co-signer who has collateral and can pledge to cover your loan in case you default on payment.

Answer 2

The Small Business Administration (SBA) offers loans and grants to get small businesses started. However, you'll need to show them a business model and put in some of your own money (even if it's only a few thousand dollars).

Having a well planned business model will go far in helping you get a loan. Banks, Investors, and the Government want to make sure you've thought through your idea and that it's solid before they give their money to you. You wouldn't loan $100 to a stranger without a job - and neither would these guys, unless that stranger can show them how he can pay it back. A good business model is a presentation explaining how your business will make money (what your expenses will be, what your revenues will be, how long until you become profitable, what differentiates you from competitors so customers will come to you instead of them, etc), and specifically what you will do with the money given to you (but equipment, hire people, advertise, etc). The more specific you are, the better.

Making a good business model requires a lot of effort - you can't slap it together in a few days - but having it will give you the credibility you need to get loans or grants and start your business.

Answer 3

There are a number of ways to start your own business.First you have to deceide what type?single or partnership,Limited or corporation.The first 2 are a little harder to get money but I will try and break each down quickly.Starting a business yourself,money can be aquired if you have something of value,house,art work or say a stamp collection.Partnership can be the money from the second or third person you bring in to the company ,you sell them a part of your idea.Now with a Limited or corporation business money is much easier to get.For example :penny shares,this is done bye bringing in people that want to work with you,the number of people it takes to run a company...depending what you have in mind starting.In other words simply put a board members group together,all stock they buy for one penny.This group must be useful in a number of ways.First know business,two know people with money that they can bring into the business for say $5.00 a share.Depends what amount you need.Remember a new business goes under in the first three years,so the best thing to do is make sure you have the capital together to keep the business on the go for at least 3 to 5 years.Most investers will wait up to 10 years for a return if it is a good idea.If this is not a new business,lets say one that has been around for a number of years and the owners want out,perhaps retire,About 80% of the business can be bought from the product or products being made.Simply terms,mostly all paper work,you sell back to the suppliers,but keep the stock and as it sells you pay and re-order the things you need.One other thing you can try for in all the above is a government grant,most are free with no payback. Hope I helped let me know [e-mail]

Answer 4

You don't want to be looking at loans, trying searching for Grants on google. Grants are money you're awarded without having to pay anything back, there are ALOT of different grants you can apply for! Especially being a woman starting your own business!!! Just search for it and do alot of research and pick the ones that suite you best, this will guarentee you money. You can also contact a Business Financial Advisor and ask for tips- just look some up in your local Yellow Phonebook.
Hope all works out!

Answer 5

The US Small Business Administration (SBA) has a plethora of loans for new start-up as well as existing businesses. If you are a woman or a minority owned business/entrepreneur, the SBA has even additional loan opportunities for you. Check out the SBA's web site or look in your phone book in the Government section under US Government for your local SBA office.

Answer 6

You can apply through the government for a grant that you dont have to pay back, or a low interest loan for first time business owners.

Answer 7

You can get small business loan from SBA but you do need to do a business plan.

What kind of business are you wanting to do?

When i was looking to do my business i could never find anything for grants all i could find was one that were not legit but just wanted your money. I wouldn't suggest purchasing any of them just to find grants. The government hides them good from the public but they sure do make sure these non profit organization find and get them.

Answer 8

You are looking for what is called an Angel investor.

This is a wealthy person who will give you money to start a business. Yes, they do exist. Search the Internet for Angel investors.

Also research how Ben and Jerry raised $750K. They went from Door to Door in VT selling shares for $10.95.

Answer 9

a business loan for free well you could always ROB a BANK and hope you don't get caught! or ask family members to advance you the moneY (thats your best and safest bet) Or go to a bank if you have good credit and apply for a loan

Answer 10

"There is no such thing as a free lunch" You will have to pay eventually. There are many loans available. Get info and details from your library or the net before you apply. There are many books and sites on the subject. Good Luck To You Entreprenuer!!!