From Graduation to Entrepreneurship: Is a Business Loan the Right Move?
Studying for a University degree is always going to be challenging, no matter what the subject. The reason that students undertake the task is to make themselves as employable as possible, with many hoping to one day to start their own businesses.
Becoming an entrepreneur could be your ultimate goal, and if it is, funding your studies and getting the money together to launch an eventual business startup won’t be easy. But that’s not necessarily true. It could be easier than you think.
Researching the Lay of the Land for Borrowing Money
Some students are lucky enough to have parents who are well enough off financially to pay for their university education. Many, however, are not and face the daunting proposition of taking out a student loan. The problem with this is that once you’ve graduated, you’re saddled with considerable debt, making the prospect of finding the money to fund a startup even more daunting.
The traditional banking networks are very cautious when it comes to lending students money, and you’re likely to get turned down more often than not. But the alternative finance sector, which has been created by the evolving Fintech industry, has made the proposition of securing business loans much more likely.
Carrying out the research itself can be challenging. Tracking down alternative digital loan companies is time-consuming, especially if you have to complete a new application form every time. But there is an easier way. You can use a business loan comparison platform.
This type of platform can be used to cover all sorts of things, including operating costs, inventory support, paying suppliers, and even acquiring commercial property. They are stabilised thanks to the strength of the U.S Banking system, and business loans up the value of $12,375,000 can be processed and guaranteed through the SBA program.
What Business Loan Comparison Platforms Offer
Business loan comparison sites are not money lenders; they are loan facilitators. Once you find a platform you want to try, the first thing to do is to use the site’s loan calculator to get an idea of how much a specific loan will cost you in regard to monthly repayments over a given period. Just adjust the sliders of the calculator to the loan amount and duration you’re considering, and you’ll be given an instant, on-screen estimation.
To give you an idea of how much you can borrow and over what terms, a typical alternative finance loan platform in North America will offer unsecured business loans of up to £350,000 over up to 20 years or up to $5 million over the same duration if you have some form of collateral you can offer.
A top alternative finance loan platform in South Africa will typically offer unsecured business loans of up to 7 million Rand over up to 20 years, or secured business loans of up to 100 million Rand.
Choosing from a Wide Range of Business Loan Offers
The great thing about loan comparison, or digital loan tendering platforms, is that everything is done online. Completing an application form in general, takes less than 10 minutes, and once you’re done, you’ll be given a list of offers from various, different, reputable, trusted sources within 24 hours. Each offer will be tailored to your specific requirements.
All you then have to do is comb through the offers, compare them and choose the one that best suits your needs.
Applying Digitally for Lines of Credit
Another option is applying for a line of credit. This is useful to cover cash flow problems and can be ideal for new startups. You’ll only be charged interest on the amount of credit you use. Lines of credit in North America can be set up for from $5,000 to $200,000, and in South Africa, from R100,000 up to R4 million.
Whatever you need a business loan to cover, you’ll find a suitable option, and a top loan business loan tendering platform will be able to steer you in the right direction.
Supporting Post Graduate Entrepreneurship
Digital, alternative finance platforms like those you can visit via the above-given links can turn dreams of becoming a successful entrepreneur into reality. They are hot topics of particular interest right now, given the fact that so many budding entrepreneurs are being frustrated by being refused loans through the traditional banking system.
Even if your previous loan applications have been turned down by the banking network, it doesn’t have to mean you can’t realise your ambitions. Alternative business loan tendering platforms are much more likely to be able to steer you in the right direction to secure the finance you need.
Business Loan Platforms and Shadow Banks
Sites such as the Business Loans platforms, use sources sometimes referred to as shadow banks. Apart from the fact that they are not constrained to the same regulatory system as traditional banks, there is nothing shadowy about shadow banks. They comprise companies that operate hedge funds, mortgages, and private equity funds. The shadow bank network even includes a number of large investment banks.
It’s the fact that they don’t have to comply with the same strict regulations that traditional banks do, that allows them to be more flexible and approve loan applications from budding entrepreneurs that banks might not entertain.
What it all boils down to is that alternative business loan platforms can be strategically important allies for wannabe entrepreneurs seeking to get underway with making their mark in the business world environment.