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When checking out your options for your first business financing adventure, you are going to want to go out and look for which financier is going to provide you with the lowest interest small business loan rate. However, many people do not know exactly where to look for this. Is the bank you’re thinking of carrying the rate that is right for you? The answer may surprise you.
Most people instinctively think to look to big banks for the answer. This is almost always a mistake; big banks not only carry excessive amounts of overhead (and therefore high interest rates as well), they are also very strict in their regulations and are very inflexible toward small start-up business. You will have much better luck, in most circumstances, by going with a small bank or credit union first off and taking advantage of their more competitive, customer-friendly policies. These organizations are also very good at providing low small business loan rates; their business models require very little overhead, and in the case of credit unions, no profit margins either.
You may also want to consider a government loan, like the SBA. The SBA has been providing low small business loan rates since its inception, and has been giving people of many demographics opportunities that they would not have otherwise had access to. Though there are many other government agencies for this purpose, the SBA is a time-tested and well-approved method of getting good financing.
You can also often get a good small business loan rate through P2P lending. P2P may seem like and antiquated method of financing, but in fact it is alive and much easier than ever. Thanks to a number of innovations, such as virginmoney.com, it is easy to conduct a P2P loan in a safe, professional manner.
There are many ways to get the financing you need, even if they may require traveling down paths that don’t appeal to conventional wisdom.