Finding the money to finance a startup is one of the toughest tasks a new business owner can face. While you might have an extraordinary idea for a business and even a solid business plan, you may not qualify for a traditional loan. Many financial institutions generally don’t lend money to businesses without an abundant credit history, a proven track record of at least two or three years, and/or an owner’s equity stake in the business.
Why are startup business loans so hard to come by? For one thing, lending money to startups is considered riskier than to established businesses because, without evidence of a company’s ability to succeed, there’s a smaller chance the business will be able to repay the loan. However, Accion can help fund your startup business.
Odilon Celestin, founder of C&M Bakery, came to Accion for a loan. He says, “When I started creating my business in 2004, I had no money and no credit. Accion helped with a loan to launch the bakery. It was the best thing I could imagine. They helped me with business development and strategies, too. Now I have 16 employees and my own line of jellies and sauces, which I distribute in other markets as well. And my bakery seats 100 people.”
Part of Accion’s mission is to help small business owners acquire the financing they need to reach for their dreams. When Accion lends capital to your business, you will also gain access to advice and support as you get your business off the ground. We’ll even help you get “loan ready” if you aren’t already. Accion provides the type of relationship and level of service that you just won’t find with other online lenders.
Accion can help you with funding for:
- Purchasing inventory
- Buying or leasing equipment
- Professional expenses
- Hiring employees
- Financing any of the many expenses involved with being an entrepreneur
Startups may be required to have a business plan with a 12-month cash flow projection. Make sure and check out qualifications page for exact requirements based on your area.