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How to get a business loan and where if I do not have any collateral?


Asked by rmoses
Posted: Saturday, June 09, 2007  |  Found in Finance & Accounting


More answers by Pam Newman
Answer by Pam Newman
It depends on what you are wanting to use the loan proceeds for. Traditionally acquiring loans for assets is easier as the lender will have the assets to use as collateral should you default on the loan. It also depends on how long you have been in business, your personal credit history, and how much you are wanting to borrow.

Potential options to explore include your traditional banks and other lending sources. In addition, some entrepreneurial organizations have loan programs for smaller amounts (typically under $50K). There are also options such as getting a home equity loan, borrowing against your retirement accounts, or using your credit cards, but you have to be careful with these options and ensure you understand the pros/cons of each option.
Pam Newman is a Certified Management Accountant, author and Certified QuickBooks ProAdvisor for Financial and Point-of-Sale software. She is also president of RPPC, Inc., which provides customized business development services.


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