I need money for my business. What’s my first step?
Well, you’re right where you need to be. www.hrsmallbizloans.com was created for owners of small businesses in Hampton Roads who need money to establish or expand their businesses. We want to help put you in touch with banks and other lenders who want to lend you money. Our site includes information that will help you get that money.
What information will the bank want me to provide?
The lender will want to see your business plan, personal credit records and recent tax returns. It also will want you to clearly articulate what you will do with the money and document the collateral you have to support the loan. The lender also wants to know that you can repay the loan from your business’ cash flow.
Should I choose a loan or a line of credit?
It depends. There are advantages to each. A loan provides money for expenses such as fixed assets and other equipment needs, regularly amortized over a period of years. A line of credit gives you the flexibility and convenience of getting money when you need it for short-term financing needs, without having to apply for a new loan.
Should I choose a fixed or variable interest rate?
Term loans often will have a fixed rate, and lines of credit, variable rates. A fixed interest rate provides the security of knowing what your interest rate and payment will be throughout the life of your loan. A variable interest rate loan may give you a lower rate and payment amount initially, but the rate and payment amount most likely will change in the future, and very often it will rise.
If I’m turned down for a loan, what do I do?
Ask the lender why. Maybe it’s something you can correct or improve upon, such as a business plan that needs to be fine-tuned. You also may want to ask about other lending options, such as city, state and federal loans available to small businesses. And consider reaching out to SCORE and the SBDC for assistance. Links to these organizations are provided on the Advice & Resources page.
Where can I turn for more information?
This website has plenty of information, including a page of links to other resources, which can provide even more information.