Automobile wreckers loan is a small business loan that you can use to cover the costs of starting an automobile wrecking business. There are several different options you can choose from. You can either take out a government-backed small business loan or get a small business loan from private lenders. Both types have their advantages and disadvantages, and there is always a chance that you will need both in order to take care of all the expenses.
SBA 7(a) Loan
This is a loan program run by the Small Business Administration. Under this program, SBA backs small business loans offered by participating private lenders. This allows private lenders to be less picky about whom they chose. For example, they would be willing to overlook some problems with your credit history. SBA examines each case on individual bases. The program requires you to provide a viable business plan and prove that you have the good character and the sound judgment necessary to make your car wrecking business successful.
Before applying for the SBA 7(a) loan program, you will need to see if the lender you are considering is participating. Keep in mind that the lenders have a right to opt out of the program for any reason.
Small Business Loans from Private Lenders
These are the loans offered by private lenders without government backing. They will carefully scrutinize you and your business plan. They may deny the loan based on your location, your education and your level of experience. They will also look at your credit history – if it has problems, chances are pretty good that you won’t be eligible. On the upside, private lenders are usually willing to loan you more money then lenders that offer SBA-backed loans.
Some important items to know to finance your are:
- How much money do you really need?
- Do you know your exact FICO scores?
- How do you plan to repay the loan?
- Who is going to borrow the money? You personally or another legal entity?
- What assets can you pledge to secure your loan?
Make sure you know you are pre-qualified before you apply. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.