The Increasing Confidence in Start-up Loans
These last few years have indeed been exciting ones for the ‘innovation sector’, as ideas get more exposure and funding than ever before. Start-up companies, for tech or otherwise, now enjoy ballooning revenue and growth, with the greatest success stories inspiring even more people to create companies of their own, in hopes of becoming ‘the next this’ and ‘that’.
Of course, every mental lightbulb needs a physical foundation to start earning. For fledgeling companies in start-up haven Silicon Valley; their namesake bank serves as the veritable coffer of cash and confidence.
There was a time when Silicon Valley dealt not with technology, but with prunes, apricots and cherries; a time when the Silicon Valley Bank (SVB) had yet to be established, to the benefit of the select tech companies people do business with today.
Had SVB existed during the 1950’s — the time of bumper fruit crops and not cutting-edge gadgets, of farmers and not engineers, of silica fertiliser and not silicon microchips–it is very likely that they would not be as accommodating to the outlandish start-up ideas numerous overnight millionaires have pitched over the decades. Not that every old banking and lending institution is unwilling to lend a hand.
While start-up companies should not exactly view banks or lenders as guaranteed financiers, regardless of the quality of their business pitch, professionals from Rapid Loans clarify that an instant loan remains as a viable option, given that the start-up owner passes the credit checks like every other debtor.
Yes, a bank loan or personal loan will not nearly be enough to cover the requisites of starting and maintaining a company. In fact, the average successful start-up raises $41M to enter the market, before exiting at $242.9M.
But, one should not ignore that it was small contributions that made start-up company success stories — from Pebble to Tesla — a reality.