Loans for small startups by Mark Hill

For decades, centuries even, the ideal approach to earning a living is to find a stable and secure job. The promise of steady income, even if it's not optimal earning, is comforting to have. However, in the recent years, more and more people are throwing job security out the window. The numerous entrepreneurial opportunities presented by technology have shifted the approach of the new generation into one that hungers for high risk and high reward pursuits. The increasing numbers of freelancers and startup companies is a testament to this. Job security is becoming less of a compelling reason for choosing a means of living. Now, it's all about making a mark in the market. And then comes the problem of loans for small startups.

Obviously, any business venture requires a capital. Startups can't grow on ideas alone. If it takes them too long to find the means to capitalize on their concept, another startupwho have the money will grab it and gain momentum. It goes without saying, however, that most startups will find it difficult to have business loans approved. Large lending companies are not that confident with the promise of new ideas. After all, the tech market is extremely volatile. Here are some other options that startups can go for.

1. Family and friends.

The good old 'borrow from relatives to start a new business' is a tried and tested way to get almost a hundred percent approval. It's also a great way to lose their respect if the business goes south. To be fair, the point of establishing a business, be it a small startup, is to make sure it doesn't go awry. But this doesn't take away the fact that relatives and friends have their own problems to attend to. Most of those problems, though they'd refuse to admit, involve money.

2. Pooling funds.

Members of a startup can opt to fund the venture from their own pockets. With banks off the list as a possible source of capital, some would directly consider this option. It's actually a great option. Since the money came directly from their very own pockets, there is a more compelling motivation to push the success of the business. There is also self-accountability. The glaring issue with this is that not all startups can function with minimal equipment and facility. Office space alone can suck the coffers bone dry in the first few months. Another obvious issue with this is that not all startups have members have the money to shell out to begin with.

3. Small business loans.

A meta observation in the prevalence of startup is that there are startups whose business premise is to fund other startups. It's one of those things that can make anyone say "Why didn't I get to think of that?" Well, apparently, plenty others felt that way and are now providing similar services. It's not a bad thing, since competition does bring out the best in services. Other services like fast credit card processing or even digital credit cards are also catching on. So watch out for more good news on budding startup companies and visionaries.

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