I am the co-owner of a Gift Basket/Gift shop in new york and we are about a year and 2 months old.We are interested in trying to expand a bit and were looking for some small buisness loans or grants that would not have a high interest and would not be a major obstacle to apply for. Is there anything you could recommend. we are a family owned small buisness. Thank you
Andrew
Answer Dear Andrew:
Most of the small business loans have interest rate of prime+ 1.5%/2.5% (prime is 4% as of today).
I am not sure what do you mean by “obstacle”.
Keep in mind the following rules:
1) Bank will look for
a. collateral (real estate, equipment)
b. credit score
c. cash flow
d. borrower's injection
2) Bank will request a complete paperwork and will do underwriting – it will take time.
When applying for a business loan always ask bank if they do lending for your business type. Some banks would not do restaurants, some would not do gas stations, some would not do funeral homes.
Most of the banks would not lend to home-based businesses or internet businesses.
Some banks would not do “small loans” (less than $100,000) because of the maintenance cost. In some cases (especially if you have good credit it is easier to apply for a credit card.
Links below have a list of credit cards, their fees and rating information:
If you need very small loan ($100 - $35,000) you may apply for Microloan Program. For more information click on this link: http://www.blquest.biz/microloan1.htm
