As a small business owner, our most difficult task is finding the money to operate our business. Taking the necessary steps to prepare for a small business loan can minimize the difficulty. Learn what we need to know to clinch the loan deal.
Fresno, CA -- (SBWIRE) -- 11/13/2014 -- Banks and other lending institutions cite risk factors as their main reason for turning down small business loan requests from startup businesses. Yet, we can still get a loan for our business by proper preparation.
Avoid the common error of thinking we can start with grants from the government and community agencies. It is even more unlikely than getting the money from our own savings, family, friends, or a bank.
The main requirements of attaining a small business loan are our personal credit history, business plan, experience, education, and feasibility of the business we are starting or expanding.
The most important task to obtain a small business loan is preparing a business plan. The business plan needs to show the lender that providing we with a small business loan is a low-risk proposition. Our business plan must answer the questions a lending institution would ask. These questions usually are:
How much money do we need?
If we are starting a business, this should be included at least in the start-up capital estimate. Accuracy is important, so request enough money to invest wisely.
What are we going to do with the money?
We will have to provide, in detail, the designated use of every dollar requested. A small business loan is often needed for: operations (new employees, marketing, etc.), assets (equipment, real estate, etc.), or to pay off business debts.
When will we repay the small business loan?
Explain in detail how this small business loan will serve as a stepping-stone for our business. We will need to convince the lender (with our financial statements and cash flow projections) that we are able to repay the loan through the expected long-term profitability of our business.
What will we do if we don't get the loan?
Let lenders know that rejection will not discourage we from starting or growing our business. We want to portray a confident and determined personality and we will try lender after lender until we receive the money we need to get our business moving.
As a small business owner, we will need a certain degree of fortitude. Be confident and proud of our venture. Let lenders know we are in control and know what's best for us and our business. Understand that lending institutions need to make loans. But if we don't get one, don't get discouraged. Ask the lender why we didn't get the small business loan. Learn from the answer, move on, and try other lenders.
Explore the resources available from the SBA.
Look locally when shopping for a lender.
About Small Business Loans
Biz4Loans is a California-based company with an exciting new way of quickly closing commercial loans for businesses small and large. With a customer-centric focus and a high standard for quality service, we embrace new technology to pass cost savings on to our business clients. Entrepreneurship Advocates “Entrepreneurship is living a few years of our life like most people won’t, so that we can spend the rest of our life like most people can’t. “ – Anonymous We believe entrepreneurship to be one of the most rewarding journeys that a person can pursue and that no two entrepreneurs are the same. Some seek a better life for themselves and their families while others take on the risk in pursuit of independence. Whether it is a small town where everyone knows each other or a big city that never sleeps, every community relies on entrepreneurs to create and provide jobs and to usher in new possibilities. At Biz4Loans, we understand the challenges that entreprenuers face in financing their venture. We also understand that a startup entrepreneur frequently has to wear many different hats while her company is getting off the ground. This is why we provide a quick, convenient, and detail-oriented process that achieves results without unnecessary delays or obstacles. Growing the Business Community commercial loan brokers Whether it is financing to cover initial start up costs, purchasing of new equipment for an existing business or an expansion of facilities, Biz4Loans can help. We know that sometimes unexpected costs as well as unexpected opportunities require quick and decisive action. Our ability to quickly close a wide variety of loans has allowed us to build strong relationships based on our reputation for serving our clients effectively. Because of our speed and adaptability, Biz4Loans has brokered over $500 million in funding to businesses ranging from farms, hotels, and non-profits to office buildings, surgical centers and apartment complexes.
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