Can I Get a Business Loan if I am Still in College?
You can get a commercial loan if you are still in college. However, there are obstacles that many young borrowers face regardless of whether they are in college. Young people often do not have an established credit history or collateral. They are already in debt if they had to take out a student loan.
Professor Trexler Proffitt works at Muhlenberg College. He has stated that there are many things that people can do in order to overcome these hurdles. Young people need to make sure that they have all of their paperwork in order. If you do not have a well-written business plan, then neither a bank nor credit union will give you a loan. This is a requirement for every lender.
Young borrowers also need to make sure that they have collateral. This is a struggle for many college students because they do not have collateral available. Borrowing money from a bank or credit union is not an option for many college students. That is why it may be better for you to borrow money from your family members and friends.
If you have a good idea that you have already begun to put into action, then you can increase your chances of getting a commercial loan. Lenders are more likely to lend money to a business that already has customers, employees and is bringing in a revenue. If you are not able to get a conventional loan and unable to borrow money from your family members and friends, then all is not lost. You can get the funds that you need from angel investors and venture capital.
However, there is a sacrifice that you will have to make in order to get funds from angel investors and venture capital. You will have to provide the investor with equity. It can be difficult for a young person to decide whether they want to give their investor a portion of the business.
Your campus is another place where you can get capital. Campuses typically do not give money to students who are interested in starting their own business. However, you can get help from conferences, programs and competitions or any place that will help you learn how to get a business loan.
It is important to note that money is not the only thing that will determine the success of your business. Your perseverance and vision will also play a role in your success. Additionally, you will need to have people who can support you in your endeavors.
Anne is a Senior Author for SBL. She began her career as an independent consultant for local businesses after graduating with a BA in Management. Since that time, she’s expanded to writing as well as consulting to spread helpful knowledge to small business owners across the country.