Do You Make These 7 Mistakes When Looking for Small Business Grants?

Small business grants are often a hot topic among entrepreneurs with limited funds and access to capital.

Sufficient funding is paramount to the success of small businesses, and small business grants can be the answer to the problem.

Many people think that getting a small business grant is a difficult task whereas this is a myth. If you are an owner of small business and have a similar thinking regarding the small business grants, you should understand that these grants are much easier to get than you think. I know it sounds incredible, but the money is sitting out there waiting for someone to grab it; billions of dollars in small business grants are waiting to be given away.

If your business sets out on a small business grant seeking mission there are some questions that you will have to answer which are: Do you have the time and the resources available so that you can search for a small business grant program and apply for it? If you do find a small business grant program that is available for your business, will you be ready to go through a lengthy, approval process?

As a grant applicant you should remember that the basic requirements, application forms, information and procedures vary with the agency making the grant award.

Remember, writing a grant application is a necessary evil you want any chance to get awarded a grant. Many people fail because they don’t invest the time to acquire the knowledge to write a successful grant proposal. Specific small business grants have specific requirements and particular application process.

Those who learn the correct way to write a grant application before applying stand a much better chance of being successful at acquiring Free Money from Public or Private Grants.

Learn how to properly format your application with eye-catching text. Know what content to provide to dramatically increase your chances of obtaining a grant. Create a stunning application/proposal that is sure to turn heads and better your odds. In a world of mediocre grant applications, you must make sure yours has something better.

Use these seven tips to make your search for small business grants more successful and find the small business financing you’re looking for:

  • Provide complete and accurate information in the application. An incomplete application may not make the review process or can add delay to approving your grant.
  • An accountant or consultant can add credibility to your application process.
  • You must capture the attention of the person reviewing your grant application’s.
  • Get someone else to check your application for clarity and any mistakes
  • Be sure it’s complete. An incomplete application might act as an obstacle to get the grant.
  • Before you fill out the application to register the business name, you may want to call and check on the availability of the name that you have chosen
  • Most denied loan and grant applications are due to improper or incomplete paperwork.

The small business grant is available to the business owners that can demonstrate a solid layout of their business plan as well as provide information about the expected returns that they hope to get from their proposed business venture. You’re grant application will be the key to your success.

Applying for Small Business Loans Successfully

Most start ups soon feel the need for extra money to expand, advertise, and generally reach a size where the return on investment is good. Once the initial investment corpus earmarked by the entrepreneur is used up, they turn their thoughts to small business loans. However, successfully applying for a small business loan is no easy task. Bankers and lenders look for certain qualities in the entrepreneur and their business before they decide to grant the loan. If the borrower is aware of what the lender expects, then the borrower can prepare their application accordingly.

When asking for small business financing, it is up to the borrower to sell their idea to the banker. As bankers consider small business loans risky, they are not usually willing to grant such loans. However, if the entrepreneur persists with a well prepared business plan that clearly outlines the strategies for taking the business forward and shows how the repayment will be made, bankers are much more willing to give a fair hearing.

When applying for small business credit, you need to ensure that you are putting in at least 25 to 50 per cent of the money needed. This will convince the creditor that you are serious about your business. The papers you prepare for your potential creditors should clearly show that you have invested your personal funds in the business.

Small merchants and those running restaurants can also apply for a merchant cash advance. One advantage of this kind of financing is that you can use the funds at your discretion. You need not tell the bank how you are going to spend the money or on what heads. You can use the funds to pay staff or redo the premises. Of course, you need to establish a clear method of repayment and a strict schedule to repay the loan. Small business loans of this kind are relatively easier to obtain.

One way of obtaining a lower rate of interest from small business lending institutions is to approach the Small Business Administration for help. If this institution underwrites your loan, the risk to your lender is reduced. You will then be in a position to ask for a lower rate of interest on your loan. By reducing your interest outgo, you will be able to garner better profits from your business.

Yet another way of ensuring that you get the loan is to offer collateral. In the event that you need a business credit line to expand your business or spend on advertising and marketing, you should offer the lender some collateral. If your business owns property or machinery, use it as collateral, that is, pledge it to raise the cash you need. Again, this reduces the risk to the lender, helping you to ask for a lower rate of interest as well.

When bankers look at an application for small business loans, they will primarily be looking at the business viability, the business assets, and the personal credit rating of the entrepreneur. If you want to obtain the loan, your presentation to the banker should cover these points. You need to show that the business plan is sound and will generate sufficient revenues to repay the loan on time. You also need to show that your credit rating is good, as the banker is ultimately lending the money on your word.

Small Business Lending – Where Manufacturers Should Go When the Banks Say “No”