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If you are looking for a business loan, you need to educate yourself one what is involved in getting one. In this article, we strip down the fluff and get to the bare knuckles of knowledge you need to know so you can get on with the process and get the funding you need. Obtaining a business loan is entirely different than getting a personal loan. Given this, it is vital that you use all the resources available to you. I am not a big fan of all the government handouts and agencies that are out there. That being said, I am a big fan of the Small Business Administration. This agency is set up to help you, the small businessperson, get financing and be a success. Your first stop should be to travel to the local office and talk with their officers. They can fill you in on the information you need and point you to local banks that would write the kind of loan you need. The SBA is an invaluable resource. Use it! Give banks what they want. Any lender such as a bank or other private institutions will be interested in the five C’s which are character, conditions, collateral, capacity and capital. You will need to provide documentation that will support each one of these C’s. For example, to prove capacity, you will need to provide financial statements that will show good cash flow and working capital levels over the past few years. To prove your capital, you will need to show them your vested interest in the business with any personal investments you have made in the business. Prepare a good business plan that will provide all aspects of information that are related to the five C’s. The more hard data you provide, the more likely the loan will be approved. Give banks your business – At their core, banks need business. When people deposit money with them, they can loan it out and make money on the interest. When seeking a business loan, make it clear that bringing your business over is part of the deal. It sounds trite, but it will be a check in your favor with the bank. Be persistent – Getting a loan is not going to be a walk in the park and you will have to be prepared to get rejected a few times. Think of a few initial rejections as something that is inevitable and refine your business plan and your pitch again and again until you succeed. Thomas Ajava helps clients obtain commercial finance loans at CommercialFinanceLoans.com.
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business loan, commercial loans, loans, loan, funding, SBA, banks, lenders, finance, financing,
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