What to Do if you Have a New Business and Want an SBA Loan
The majority of banks these days refuse to hand out loans to new businesses. They usually only give in to requests from those with at least 2 years of experience in the business. In other cases, if startups do apply for loans, they require the respective owners to have the necessary experience in the same area.
Any new business faces a struggle in finding a funding source. Several startups are small and they function with a hope of growing as they build a reliable track record. However, investors and banks will require proof to support the fact that you would repay them. Hence, as a new startup or business, you will probably be rejected after applying for an SBA loan.
Look for Services That Lend To New Businesses
It is advisable to borrow from nonprofit firms and nationwide finance providers who focus on providing funds to new and upcoming businesses. There might definitely be a cap on the amount of money you can get, but you can still get a loan.
Furthermore, there is also the option of borrowing depending on your cash flow. There are several working capital providers who would lend you funds if you have considerable online sales or have only three months of history in sales. You can also look for a merchant cash advance if you have good debit or credit card sales.