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Searching and Applying for Grants and
Business Loans Online
It is now
commonplace to apply for consumer, mortgage and consolidation loans and
lines of credit online, but most
people still have difficulty comprehending an online application for a
business loan.
Obtaining a commercial loan requires a more detailed process than that
for most personal loans because the financial specifics of both the
prospective entrepreneur and the business are scrutinized. Some banks
will accept online applications for $50,000 or less and promise a
response in three days. Applications for larger amounts require a more
traditional process.
An Internet search, however,
reveals that you can indeed apply for grants and business loans online.
An example of a clearinghouse is listed below:
Business Finance.com
advertises itself as a clearinghouse of information for more than 78,000
sources of capital. Fill in the form and await a response.
Face-to-face not likely to fade
As research shows, some online business loan opportunities exist.
However, attempting to secure a business loan online is not likely to
become an acceptable procedure in the near future.
Banks are conservative, low-risk institutions by nature. Bankers tend to
want to press the flesh and when it comes to commercial lending, they
have a legitimate need to meet you personally. They want to make an
estimation of whether or not you are a capable businessperson. There are
the routine procedures that could be processed online, but intangible
matters associated with the entrepreneur's personality cannot be
surmised online.
Secondly, this matter of small business grants needs continued
explanation. We have all seen the televisions ads urging entrepreneurs
to take advantage of grants to start a business, but this claim requires
serious clarification. There are grants, but those for small business
are primarily tax and wage refunds for hiring qualified individuals to
train on the job. Or companies are issued grants to conduct new product
development research.
There are other means of securing small business development grants
through the
Economic Development Administration.
But nonprofit and local government involvement is typical, with those
funds usually funneled to the types of agencies in small-business
development efforts.
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