Do You Qualify for a Traditional Bank Loan?

Qualify for Traditional Bank Loan from The Startup Garage
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Traditional Bank Loans, as the name implies, are loans given directly from a bank. Unlike Lines of Credit (LOC), they are given in lump-sum amounts which means the borrower is required to pay interest on the entire amount, regardless of whether the funds are used for purchases.

Bank loans typically fund larger amounts than those offered through SBA loans. They are most often used by mature companies because they are document intensive, requiring good credit and an operating history of at least 3 years; additionally, the loan must be secured with collateral such as property or equipment which is why typically only more mature companies qualify. Traditional bank loans also often have restrictions on how the funds can be used.

The advantage of traditional bank loans, if one can qualify, is how the low interest rate is when bank risks are mitigated by collateral and thorough credit history requirements.  However, rates can be more variable than government back loans as they vary based on personal credit history, financial analysis of the company, and the current economic climate.

Whether you have a question about Qualifying for a Bank Loan, or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!
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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.