If you are interested in starting up a small business loan, you made need to establish financing. Deidre Davis with Michigan State University Federal Credit Union shared some tips.
Davis said that there are actually several types of business loans they offer. One is a basic term loan where you repay over a long period. It often has a low interest rate and offers a longer term.
Another is Small Business Administration Loan, backed by the U.S. Small Business Administration. This often has some attractive rates and terms. To be approved, you`ll need to meet specific credit requirements and complete a lengthy application process.
Other options are lines of credit and credit cards that offer continual access to funds through a revolving line. These can be a way to improve cash flow or cover short-term expenses.
When choosing which loan is best, there are a couple of things to take into consideration. First, you need to create a business plan that would include an estimate of your cash flow and business expenses. For example, determine whether you plan to buy or lease the space needed to operate your business. Once you have these details, you can begin to look at the types of business loans available. Be sure to understand the loan term, fees, and annual percentage rate for your loan options.
MSUFCU has many business products to help members start and grow their businesses. Their knowledgeable business services team works closely with members to determine the best products for their needs and guides them through the entire loan process.
The credit union offers many business loan products and services, including the business startup loan, business cash back visa credit card, lines of credit, and more.
To learn more, visit msufcu.org