Are you looking for the right financial provider for your business loan?
It’s a dream to finally launch a business of your own— to finally become your own boss and somehow become successful in the industry. However, starting a business is the first tricky step to becoming one of the crowded industry.
Sometimes, it can be frustrating— some things might work, and some things fortunately will. Basically, starting a business does not just involved effort, willingness, wise decisions, and smart business plan. It also involves finding the right source for your financial needs.
Let’s face it, finance is one of the biggest assets you need to have for you to be able to make your business come to life. Whatever business you are putting on, it basically needs, rental fees, tax fees, and even a few starter money for crews you’ll pay.
All the reason why you definitely need to consider asking for financial assistance for a loan or lease at Trade Finance Hong Kong.
Today, this blog will tell you a few tips as to where you can find financial aid for your soon-to-be business. Let’s check this out!
Where to Get a Financial Assistance
Finding the right source for your large business loans is very important. You should always prepare yourself for possible rejections on your first attempt. Having multiple sources to apply for a large business loan can be useful.
Let’s find out where Trade Finance Hong Kong can fit into all of these options.
1 Large Banks
Banks are the most common lenders for both small and large businesses. They are the first option whenever a loan is needed.
However the chances of having your application rejected are often higher than getting it approved. Large banks have stricter policies with regards to loan applications, resulting in an approval rate of only 20%.
2 Smaller Banks
A lot of smaller banks are looking for companies as candidates for large business loans. In order to meet the requirements, companies need to have strong credit, substantial collateral, and a strong underlying business.
Approval rates for smaller banks are higher than large banks at above 50%. However, lending limits tend to be lower and more cautious.
3 Small Business Administration (SBA) Loans
SBA is a United States government agency that provides support to entrepreneurs and small businesses. Loans can be given up to $5 million at a reduced risk to the lender.
While this sounds like the best option, it is important to note that the process for loan applications can take from 2-4 months.
4 Alternative Lenders
Alternative lenders are commonly referred to as FinTech or peer to peer lenders. While there is generally more flexibility as compared to banks, the maximum amount of loan is only at $100,000-$500,000.
5 Private Finance Companies
Most private finance companies offer flexibility with regards to payment options with shorter processing time. Businesses are allowed to make smaller monthly payments to help them generate revenue and gain a faster return on investment.
Payments can also be customized to match business’ seasonal cash flow.
To start financing your business today, take the call today at Trade Finance Hong Kong.