Many small businesses are hurting financially and are in need of temporary assistance until the economy picks back up. There are many ways of getting a business loan, and this article focuses on all the different methods of getting this type of loan.

Things You Will Need

Pen and paper.

Step 1

Trim off the fat. Oviously, it's easier to get a small amount of money than a large amount of money. For this reason, you should try to tighten up your start-up budget. You may find a lender that is willing to offer a portion of the money but not all. A few thousand dollars could be the difference in getting a loan or not.

Step 2

Search for an Angel Investor. An angel investor is someone who provides capital for a business start-up, in exchange for convertible debt or ownership equity. You can find these types of investors online. You can go to a website that connects lenders and borrowers, or you can seek out these people other ways.

Step 3

Seek out venture capitalists. A venture capitalist is a business lender experienced in high volume deals with start-up businesses with potential. They make money by taking a minority stake in the business in exchange for start-up capital. These companies don't require a good credit score, instead they require good business models with high growth potential. If you have a good business idea, your chances in getting a loan are pretty good.

Step 4

Search for peer-to-peer lenders. Many websites can connect you via online with legitimate business lenders. These lenders are experienced in dealing with start-up companies without a lot of capital. These sites are completely free to the borrowers and have the ability to connect you with thousands of lenders around the world.

Step 5

Create a website or blog about your business. The internet is the best way to advertise for anything because it's free. You aren't losing anything, so you mise well try. You can connect with potential lenders by creating a blog about your idea. You can also create a website, which says a lot to investors about your dedication.

Step 6

Go for family or friends. Family and friends are always potential lenders because of they're personal relationship with you. They are statistically more likely to give you a loan anyway. Even if they don't have the money to lend you, maybe they know someone. It's worth a try if you want a business loan bad enough.


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