If you know me, you know that I’m a big fan of building businesses.
My dream is to build a business that I can sell for millions of dollars. To do that, you need to have some sort of funding, either from your personal bank account, friends and family, venture capital, or a loan.
Thankfully getting a loan for a small business is much easier these days than it used to be. While there is nothing wrong with going the traditional route of asking those close to you to invest in your company, it’s much easier to get loans to get your company funded appropriately. This also has the added benefit of not mixing family and friends with business, which can be a cause of major conflicts.
So if you are looking to get a loan for your small business to increase your working capital, purchase inventory, or invest in a new location, here’s how to get a loan for a small business in a few easy steps:
First, go to LendingClub.com.
Easy enough, right? The page should look something like this:
Enter how much you need and what the loan is needed for:
You’ll be asked to provide some information about your business:
Next you’ll be asked some information about yourself:
You’ll be asked to provide financial information about your business as well:
It’s important to note that Lending Club has this disclaimer:
By continuing, you authorize WebBank and Lending Club to each obtain credit reports from one or more consumer reporting agencies. Checking your rate will not affect your credit score.
Checking rates do not affect your credit score in any way, which is a great benefit of Lending Club. That means there is no risk to seeing what interest rate you would receive on a loan.
If you are looking to get a loan for a small business, I would recommend you check out Lending Club and see what interest rate you would qualify for. It may be just what you need to get the inventory needed to meet customer demand, upgrade a property, or some other investment that you have put off because of a lack of capital.
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I love the concept of Lending Club! I would definitely look into it if I needed a small business loan for some reason.
Thankfully we’ve never been in a position where we need funding for our business. The start up costs were minimal at best, which is the best in my opinion. :)
It certainly seems easier than a traditional bank. I’m curious if you default on lending club, does your credit score go down? Not that I’m planning to but I’ve always wondered that.
Dude, that cartoon picture on the lending club looks like Jason Mesnick of Bachelor show fame. Clearly I watch too much TV. :-
Would these loans be unsecured loans (i.e. – cleared in bankruptcy)?
My dream is also to create a business that sells for millions. For me, I probably need to stick to credit that I can secure myself. Lending Club looks like a good option for folks who have limited access to traditional credit (oh, and aren’t Canadian ;-)).
Holly at ClubThrifty I think anytime you can simplify a process so that you can plug in all your information online it’s a good thing. I definitely like the fact that they are catering to the small business demographic.
FrugalRules That’s typically a good thing, but that also means the barriers to entry (at least financial barriers) are extremely low. That can cause increased competition. Then again, I don’t know all the details of your biz and I’m assuming you already took that risk into consideration.
Eyesonthedollar It probably depends on your business structure – at least I would imagine it would. If an LLC defaults on a loan does it mean the owners of the LLC are affected by credit score? I think that would determine it?
debt debs Haha I watch a lot of TV but haven’t started watching that show until recently (since I got married haha). You never know, it could be him.
DonebyForty I imagine that would have more to do with your business structure than anything? I guess you’d have to check with the folks at Lending Club.
moneypropeller I think Lending Club is a good option if you have a specific plan for the funding and you don’t want to give up equity. But yes, if you aren’t Canadian ;)
debt debs Ha ha ha…I TOTALLY thought the same thing Deb!
I have actually never heard of lending club, but I love hearing about other resources people can utilize to start their own business. I have funded my business with my own assets, but I will definitely need to contemplate a loan down the road when I am ready to expand.
With the rise of the internet that’s a much better solution than hard money lenders or worse shady individuals.
I love the calculator! I may use this in the near future. :)
blonde_finance I like the idea of taking out a small business loan if you are lacking capital for “ready to go” purposes. It can help prevent diluting your equity early on and also can help create the capacity that only funding can provide.
Charles@gettingarichlife Great point, Charles. I looked into a personal loan for a huge repair (that thankfully ended up being paid for by the city) and I was a bit taken aback that the lender was only at the branch by my house for three hours in the afternoon once a week. I went to a site like Lending Club and had a quote within about five minutes. Amazing the efficiency the internet has allowed for some things.
MoneyMiniBlog Hmmm not 100% sure what you are talking about when you say calculator? But anyway, the site does work pretty well if you are looking for some additional capital for a business.
DC @ Young Adult Money MoneyMiniBlog Maybe calculator isn’t the best word. lol. I’m just talking about how they use the form to calculate for you. It’s an easy process.
I just like that if we apply business Loan online It get approval within minutes.It can offer highest unsecured loan amount then by any loan provider.
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