What is a DSA? The answer is it's a tax-free, government-issued, business loan for small businesses. These are all the same as a normal bank loan, except that you don't have to pay the bank until you get your money back. Here's what you need to know about these loans.
Do you need one of these? If you're looking to start up or expand a business, a DSA can be very helpful. They give you a lot of help in the process of getting a business loan. The Small Business Administration (SBA) even says that DSA's can be an excellent alternative to conventional bank loans for small business loans.
But do you really need to get one? This depends on what type of business you're trying to set up. DSA's will offer you a helping hand and the money will be there in a timely manner, but you may not need it right away. For example, if you're just getting started, you probably won't need the money for very long – it'll only take you a few months before you start seeing some results.
However, you will need to get a Business Development Account with the Small Business Administration. You'll be able to get this loan through your local bank – they might even have one in your area. However, if you have never had a DSA before, you might have to go to a different bank to get your business loan. There are several banks that offer DSA programs.
How much money can you get from a DSA? DSA's are a great way to get funds for your business loan. The funds can be used for many things, including: paying off outstanding debts, opening new branches, or remodeling and expanding your current business. There is no limit on how many times you can apply for business loans through your DSA. The funds are available to you in full, and you don't have to pay it back until you are finished using the funds. In other words, if you already have money for your business loan and you use all of it up, you can't get any more.
Can you get your DSA approved before you pay back the loan? Yes, you can get your DSA approved before you pay back the loan. This is great because:
No DSA business loans mean you don't have to pay money back. What's the best way to pay back money? If you have it available, consider using it to pay off debts, improve your business, and/or open a new business. Many people get business loans and then never pay them back. If you use your DSA to pay debts and then use the money to expand and get new business, you will be able to avoid paying the debt.
While there are some risks involved with getting a DSA loan, you won't have to worry about having to pay back the money. You don't need to be an excellent credit candidate in order to get approved. You also won't have to pay the interest either since the loan is tax-free. You will also get competitive rates on your DSA business loans, which is great for your pocketbook. As long as you use the money wisely, DSA business loans can be a life saver when starting or growing a business.
Before getting a loan, you need to determine how much money you are going to need. It is okay to borrow up to 100% of your current gross sales but only if your business will be able to generate an income that pays the loan back in full. You must also keep a good profit margin in mind. It is . . . . . . okay to borrow a small amount but if you do so you must be able to pay back this within the next 12 months. Another key factor that can help you get the best rate is to make sure you have at least one year of business history. This will ensure that you have enough time to pay back the loan.
Since most business loans require collateral for security, it is recommended that you purchase a property as collateral to secure your DSA business loans. Most banks will not give out a loan without this type of security, so you should consider this before applying. If you plan on purchasing a home or real estate in the near future, this may be a wise investment since you will be able to pay off your mortgage in a shorter period of time and obtain a lower interest rate. The amount of money you can borrow will depend on how much money you have invested into your business.
Always remember to always repay your business loan on time and submit all the required documentation. A DSA will provide you with financial assistance but it is up to you to make sure that your business is capable of paying it back. There are many incentives available to improve your business such as tax breaks and down payments but you need to make sure that you are improving your business in order to benefit from these incentives. If you are able to pay your business loan on time then you may qualify for additional DSA funding in the future.