Business Loans Buyer's Guide
Small business loan tips
Early repayment penalties. Some banks charge a 2% to 5% penalty if you decide
to repay the loan early. Repaying early can be a great way to reduce your costs, so if you're
going to try to get ahead, make sure the contract allows it without penalty.
Start building relationships now. Personal relationships matter more than
you might expect: a lender who knows and trusts you is much more likely to take a gamble on your
small business loan. Take the time to talk to your primary business banker and get him or her
on your side before you need a loan.
Avoid eating out. From pizza shops to gourmet bistros, restaurants come and
go very quickly. Unless you have specific food industry experience, a great concept, and experienced
staff lined up, you'll find it almost impossible to get a small business loan for a restaurant.
Don't pinch pennies. Saving every possible dime shouldn't be the emphasis of
your search for the right loan. A small business loan that carries conditions you can live with
from a vendor who will be on your side now and in the future is much more important than a small
cost savings.
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