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How to access grants and loans for starting small business

This article is going to take you through the necessary steps of accessing grants and loans for starting small business.

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Starting a business requires capital, that is where this article comes in, we will guide you through the process of getting your capital in the best way possible.

As a small business, you need funding for testing new products, making research on the best suppliers to use, and researching market trends as well as your target audience.

Established businesses on the other hand have the advantage of being open to a network of individuals or groups of people ready to finance them. This, however, isn’t the same for new businesses.

How to access loans for starting small business

Below are the steps required to apply for loans for starting small business

Quantify your capital

Understanding that before you can apply for loans, you have to plan. You are required to have an accurate idea of how much you will need. Here, you will have to include every foreseeable expense to make your loan worth it. It is important that you know the right approximation of the intended funds for your business.

Outline a business plan

In this process, you are required to draw out a business plan, which will include:

  • Describing your company
  • Writing an executive summary
  • State the purpose of your business
  • Give details of your product or service
  • Market research
  • Stating marketing and sales plan

Some individuals or organizations will request a standard business plan before considering you for the loan to start your business. Some lenders don’t ask for a business outline, but to be able to point out your needs and get the right estimate of capital, you will have to draw an outline.

Please scroll down to see available loan and grant offers.

Examine repayment method

The next stage is finding the best means to repay your loan, to apply for loans for your small business, you have to put in mind that you have to request a reasonable amount of money. This is to ensure that you are able to pay back at your convenience. There are different factors on which your lender can base your monthly payment:

  • Your business profit
  • Your business type
  • Your income
  • The type of loan you collected
  • Your credit history

In this case, your credit history determines how credible you are. Showing if you are creditworthy or not, would have an immediate impact on your loan term and interest rates.

Lenders for small businesses are understandable, they understand that every business is different in its own way, making it possible for them to offer different options when it comes to loans for starting small businesses.

The repayment period for every loan option is different. Below are common loan types and their repayment duration:

  • Term loans: 10 years
  • Microloans: 6 years
  • SBA loans: 10 years
  • Invoice financing: About 5-9 months

Seek the opinion of experts

Involving experts in this field would be the next step in applying for loans for starting small business. They would have better recommendations for you and would help you shed more light on the process.

They could help you determine the best financing option, help you decide if you could apply for grants instead, or stick to taking loans. Furthermore, they will also help determine the best repayment method, to ensure you run a profitable business.

Where to apply for loans & grants

For loans

Below are a few links where you can access loans.

For grants

Below are a few links where you can access grants.


Kindly understand that grants and loans are two different means of financing your business. Grants could be tagged as financial support which you do not have to pay back.

Grants are mostly given by the government, corporations, NGOs, and trust organizations for different reasons. While loans are given by individuals, financial institutions and private organizations. Loans, unlike grants, are not gifts. They are to be paid back on an agreement basis.

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