Getting funding for any small business can be difficult, but getting a loan for a startup presents its own unique challenges. Chief among them: your business has no actual business history. The traditional methods of calculating the strength of your business aren’t applicable because, well, your business doesn’t exist. But there’s one thing we know well here at Lendio…
At one point or another, every company was a startup. If companies only got funding based on their previous track record, there would never be any new companies. That’s a bad situation for everyone.
Good point. So, where do I go now?
You don’t have to go anywhere. You’re already here!
I mean, what do I need to go forward?
Well, the application process for a loan at Lendio is almost exactly the same whether you’re applying for a more traditional business loan or a startup loan. You’ll need to know things like your approximate credit score and what industry your business will be in, as well as some other general information about your new business.
So there’s nothing different about applying for a startup loan?
We wouldn’t exactly say nothing. For example, your personal credit score will be more important than usual since you have no sales or business collateral (mid-to-high 600’s are generally good scores for a startup). You’ll also want to be able to show your past experience in the field if you have any. And you may need two years of personal tax returns depending on the type of startup loan options available to you.
That doesn’t sound so bad.
We’re just saying that in your voice to make it sound better. But you’re right, it’s actually quite simple. Especially when compared to getting a startup loan from traditional lenders.
Well, that got a little meta…
Didn’t it though?