Finimpact

Frequently Asked Questions(FAQ)

Are LLCs able to get business loans?

LLC loans, despite being specifically for LLCs, are just business loans in disguise. So yes, LLCs are able to get a variety of different business loans.
Can an LLC get an SBA loan to help with startup costs?
Is it hard to get business loans as an LLC?
Getting a business loan as an LLC is not a terribly difficult process, you just need to be ready for some paperwork. Plus, those looking to get the best possible rates might want to consider signing a personal guarantee. This, however, puts the responsibility on the borrower in the event of default.
How much startup capital does an LLC need?
How much cash you need depends on the business you’re starting and the industry you’re in. In general, though, Small Business Trends states that startup costs range from $30,000 - $40,000 for the first year
Is it possible to get an LLC startup loan with bad credit?
Yes, it’s possible to get most loans with bad credit. However, getting loans with a bad credit score means you’ll get the bottom of the barrel when it comes to interest rates. In other words, you’ll have to pay a lot more (sometimes thousands of dollars more) in interest over the entire life of the loan than someone who has excellent credit and qualifies for low rates.

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Personal Finance Expert

Christopher Murray

Personal Finance Expert

Christopher Murray is a professional personal finance and sustainability writer and editor who enjoys writing about everything from budgeting and saving to unique investing options like SRI and cryptocurrency.

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