Loans to Start New Business

Video Transcript

"My name is Bill Rae. I'm with Alumni Financial Services. I've been in the business in the finance world for well over twenty years, and today we're going to talk about loans to start a new business. Well first of all, what type of loans are there available? What we're generally talking about is two types of loans, either a secured loan, or an unsecured loan. So what's a secured loan? Secured loans could be a loan that's based on any type of asset you might own, such as do you own real estate? Can you place a loan using the real estate as collateral? Meaning if you don't pay, they get the land. Other type of assets could be cars, jewelries, other valuables that they might be able to take should you not be able to repay the loan. The other type of loan out there is an unsecured loan. Now an unsecured loan is sometimes called a signature loan. Basically an unsecured loan is your promise to repay. A little harder to get. So if you're looking for loans for businesses, as in always in any good business, you should know what product or service you're bringing to the market. You should have a well written and thought out business plan, should have an excellent cash flow projection in sight. Seek outside advice. Talk to your financial adviser or your accountant, then search around. Shop your local banks, talk to private investors, some kind of venture capitalists, numerous type of money is available out there. But as in always, make sure you understand what the cost of getting that money is. What are the terms? Can you do it? Can you pay it back on those terms and with that kind of interest and still make money? My name is Bill Rae, I'm with Alumni Financial Services and we're here to help you build wealth."