3 Online Tools To Find Funding

Whether you’re trying to grow a business or start one, securing the amount of money to do it could be overwhelming. From traditional loans to crowdfunding, nowadays there are many choices to consider. To determine those are best for you personally, listed below are three online tools to consider:

1. Intuit’s Loan Finder. Intuit, the financial software-maker headquartered in Mountain View, Calif., offers a free of charge tool to find funding options and loan experts that will help you through the procedure.

When to utilize it: If you are uncertain what your funding options are or how exactly to prepare an application, think about this tool. Intuit will check around your online application for the loan to 450 lenders, from banks to credit unions and micro-lenders to more alternative financial loans.

How it operates: You submit financing application and receive an instantaneous “pre-approval” from interested lenders with rates and financing details. Loan amounts range between a few thousand dollars to many million. Once you select a lender, you will need to submit more information (think taxation statements or financial statements) to officially make an application for the loan. Final approval comes within 12 and 45 days.

Take note: You will need to at least submit basic financial information before you’ll get any response in regards to what sort of loan you meet the criteria for.

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2. Multifunding’s Banking Grades. The Broad Axe, Pa.-based business loan advisory firm, Multifunding, offers a free of charge online tool that grades banks predicated on their small company lending. It calculates the percentage of a bank’s deposits that are likely to smaller businesses. As guidance, Multifunding labels any loan significantly less than $1 million as you that is likely likely to your small business. To get an “A,” a bank must use 25 percent or even more of its domestic deposits to create loans to smaller businesses: there are 2,693 banks with an “A” grade.

When to utilize it: If you are set on trying to get a traditional mortgage, this tool will help you identify a bank which has a history of lending to smaller businesses.

How it operates: Searching for banks by zip code. Apart from Texas and California, banks in the midwest reign supreme in small company lending: Minnesota, Iowa, Illinois, Missouri, Nebraska, Wisconsin, Kansas and Oklahoma were eight of the most notable ten states, ranked for getting the most “A” banks.

Take note: Multifunding’s grading system depends upon the percentage of a banks’ total deposits that head to small businesses. Due to level of deposits that they hold, the country’s largest banks aren’t predisposed to rank well upon this list.

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3. SoMoLend. This Web-based service matches entrepreneurs with investors in the same geographic area. SoMoLend, headquartered in Cincinnati, Ohio, targets small, upstart companies with up to 15 employees that would like loans between $100 to $1 million. Investors on SoMoLend have huge variations from banks to individuals. What’s different about these investors is they are centered on businesses within their own communities.

When to utilize it: If your existing business includes a dedicated fanbase in your community, or you primarily serve customers in town, this program may suit you.

HOW IT OPERATES: You must complete a credit card applicatoin, including financial information (both personal and business). SoMoLend then ranks your company predicated on risk – a rating of 1 to five stars – so investors can weigh their options. Risk is founded on your personal credit history, your time running a business and with managerial experience, and the quantity of debt your company has as a share of income. Investors use a GPS location tracking system to recognize businesses that would like funding nearby with SoMoLend.

Take note: You need to submit a whole lot of financials upfront, including personal tax information, credit history, business taxes, a profit and loss statement, and a valid Employer Identification Number. From then on, you’ll find out if you have been pre-approved for financing. If you opt to accept financing, SoMoLend charges a 2-percent fee.

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